Business
Xenophobia: MTN, Stanbic IBTC, other South African firms face pressure in Nigeria
Xenophobia: MTN, Stanbic IBTC, other South African firms face pressure in Nigeria
South African companies with identifiable business interests estimated at about N20.43 trillion in Nigeria are facing growing uncertainty as pressure mounts on the Federal Government to take stronger action over renewed xenophobic attacks against Nigerians in South Africa.
The renewed violence has triggered calls for economic retaliation, with lawmakers, student groups and other stakeholders urging the government to consider measures against South African businesses operating in Nigeria.
The calls followed reports of attacks on foreign nationals, killings, looting of businesses and the displacement of Nigerians in different parts of South Africa.
The Federal Government has so far focused largely on diplomatic engagement and measures to protect Nigerians in the country, including the evacuation of 1,490 Nigerians from South Africa in five phases between June 10 and July 15.
Nigeria has also continued to press South African authorities to strengthen protection for Nigerians and other foreign nationals and ensure that those responsible for attacks are brought to justice.
The latest dispute has, however, renewed scrutiny of the extensive South African investments in Nigeria, which span telecommunications, banking, insurance, retail, hospitality, logistics, aviation, manufacturing and property-related businesses.
The estimated N20.43tn figure is based largely on publicly available market capitalisation, asset and property valuations of major South African-linked businesses operating in Nigeria. It should not be interpreted as the precise value of South Africa’s foreign direct investment stock in Nigeria.
Calls for retaliation
Pressure for economic retaliation intensified after South African authorities ruled out compensation for Nigerians who abandoned businesses and properties during the latest wave of xenophobic violence.
Senator Adams Oshiomhole called on the Federal Government to consider appropriating profits made by South African companies operating in Nigeria if South Africa failed to compensate Nigerian victims.
Oshiomhole argued that Nigerian authorities should explore stronger economic measures to protect the interests of citizens affected by xenophobic attacks.
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The proposal, however, has not become government policy, while the Senate subsequently rejected the idea of using profits from South African companies in Nigeria to compensate victims.
The National Association of Nigerian Students (NANS) has also threatened protests against major South African-linked businesses, including MTN and MultiChoice, in response to the attacks on Nigerians.
The growing calls have raised concerns about whether the diplomatic dispute could eventually spill into Nigeria’s business environment.
Nigerians killed in South Africa
The renewed violence has also resulted in deaths.
Among those killed were Amaramiro Emmanuel and Ekpenyong Andrew, who died in separate incidents in April.
Two other Nigerians, Emeka Iroegbu and Musa Joe, were reported killed in separate incidents on June 28.
By late July, reports indicated that at least four Nigerians had been killed during the latest wave of violence, while Nigerian officials said many more Nigerians had suffered harassment, intimidation, property losses and other forms of abuse.
The Nigerian government subsequently intensified its response, including the voluntary evacuation programme that returned 1,490 Nigerians from South Africa.
The evacuation was coordinated through the Ministry of Foreign Affairs, the Nigerian High Commission in Pretoria, the Nigerians in Diaspora Commission and other government agencies.
South African businesses in Nigeria
South Africa’s commercial presence in Nigeria extends well beyond the brands most familiar to consumers.
The most prominent South African-linked companies listed on the Nigerian Exchange are MTN Nigeria Communications Plc and Stanbic IBTC Holdings Plc.
MTN Nigeria is one of the largest companies on the Nigerian Exchange by market value, while Stanbic IBTC is a major player in Nigeria’s banking and financial services industry.
Other South African-linked interests in Nigeria include Rand Merchant Bank, Sanlam, Alexander Forbes, Broll Property Group, Metrofile, PEP, Mr Price, Pick n Pay, Nampak and businesses associated with the hospitality, aviation and manufacturing sectors.
Some companies commonly described as South African businesses have, however, undergone ownership changes over the years.
For instance, Protea Hotels, which has South African origins, is now part of Marriott International’s global hotel network. Some Nigerian operations also involve local investment partners.
This makes it necessary to distinguish between companies with South African origins, companies controlled by South African parent groups and businesses that still have substantial South African ownership.
How the N20.43tn figure was calculated
The estimated N20.43tn value of South African-linked interests in Nigeria is largely derived from the market values and publicly available asset information of major companies.
MTN Nigeria and Stanbic IBTC account for the bulk of the figure when their respective market capitalisations are considered.
However, market capitalisation should not be treated as the amount of money invested by a foreign parent company.
Both MTN Nigeria and Stanbic IBTC are publicly listed Nigerian companies with shares held by Nigerian and international investors.
Consequently, any action targeted at the companies could affect not only South African interests but also Nigerian shareholders, pension funds, employees, customers, suppliers and government revenues.
Nigeria maintains diplomatic pressure
Despite the growing calls for retaliation, the Federal Government has continued to pursue diplomatic channels.
South African International Relations and Cooperation Minister Ronald Lamola visited Abuja as President Cyril Ramaphosa’s special envoy amid efforts to ease tensions between the two countries.
The discussions focused on the safety of Nigerians and other foreign nationals in South Africa, migration issues and the broader state of Nigeria-South Africa relations.
Nigeria has maintained that South Africa must do more to prevent xenophobic attacks and protect Nigerians legally resident in the country.
South Africa, for its part, has reiterated its opposition to xenophobia, racism and discrimination while insisting that criminality should not be associated with nationality.
The dispute has also generated concerns over compensation for Nigerians who lost businesses and property while fleeing the violence.
South African authorities have rejected calls for government compensation, arguing that the state cannot compensate individuals for private property abandoned during the unrest.
Economic stakes for both countries
Any decision by Nigeria to retaliate against South African companies could have consequences for both countries.
MTN Nigeria, for example, provides telecommunications services to millions of Nigerians and employs thousands of people directly and indirectly through its wider supply chain.
Stanbic IBTC also has a significant presence in Nigeria’s banking, investment and financial services sectors.
Any disruption to their operations could therefore affect consumers, workers, shareholders, suppliers and government tax revenues.
South Africa also has significant economic interests in Nigeria, making the relationship important to businesses in both countries.
The situation has consequently placed the Federal Government in a difficult position: responding firmly to xenophobic attacks against Nigerians while avoiding measures that could undermine jobs, investments and economic stability at home.
For now, Nigeria appears to be relying on diplomatic pressure, consular intervention and the protection of affected citizens rather than imposing broad economic sanctions.
But as calls for retaliation continue to grow, the future of South African investments in Nigeria could become a major factor in the increasingly tense relationship between Africa’s two largest economies.
Xenophobia: MTN, Stanbic IBTC, other South African firms face pressure in Nigeria
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Auto
Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends
Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends
In a rare recognition of industry leadership and enduring contributions to Nigeria’s automotive sector, the Nigeria Auto Journalists Association (NAJA) has named Chief Benson Uwatse, Chairman of Weststar Associates Limited, recipient of the prestigious Nigeria Auto Legend Award at the 19th Nigeria Auto Industry Awards.
Uwatse’s emergence places him in an exclusive league of automotive icons, making him the third industry heavyweight to receive the distinction after Chief Michael Ade-Ojo, Chairman of Toyota Nigeria Limited, and Dr Cosmas Maduka, President and Chief Executive Officer of Coscharis Group.
The recognition celebrates Uwatse’s more than three decades of involvement in the Nigerian automotive industry, particularly his role in advancing the Mercedes-Benz brand and strengthening its presence in the country’s premium and luxury vehicle market.
The recognition underscores Uwatse’s longstanding involvement in the Nigerian automotive sector and his contributions to the development and representation of the globally renowned Mercedes-Benz brand in the country.
As Chairman of Weststar Associates Limited, the authorised general distributor of Mercedes-Benz in Nigeria, Uwatse occupies a strategic position in the country’s premium and luxury automobile market.
Weststar is responsible for coordinating Mercedes-Benz’s business activities in Nigeria, covering passenger cars, commercial vehicles, trucks and buses, alongside dealer support, marketing, training, genuine spare parts supply, warranties and after-sales services.
The company officially commenced operations in February 2008, assuming responsibility for Mercedes-Benz sales and after-sales operations in Nigeria. Its distribution network and authorised dealerships provide sales and servicing support across different parts of the country.
Uwatse’s association with the Mercedes-Benz brand spans more than three decades, giving him considerable experience in the Nigerian automotive business, particularly in premium vehicle distribution, customer relations and brand development.
His involvement in the business has also included leadership responsibilities in the Mercedes-Benz dealership network, specifically as Managing Director of MB Automobile Services Limited, one of the authorised Mercedes-Benz dealers in Nigeria.
The Nigeria Auto Legend Award is particularly significant because it recognises individuals whose contributions extend beyond routine business operations to the development, growth and advancement of the nation’s automotive industry.
Chief Ade.Ojo, the founder of Elizade Nigeria Limited and Chairman of Toyota Nigeria Limited, was the first recipient of the special industry recognition in 2017, in acknowledgement of his decades of investment, enterprise and contributions to Nigeria’s automobile business.
Dr Maduka, who transformed Coscharis from a modest automobile trading venture into one of Nigeria’s leading indigenous conglomerates, also earned recognition for his remarkable contributions to the automotive sector. Under his leadership, Coscharis Motors secured distribution franchises for several globally recognised automobile brands, including BMW, MINI, Rolls-Royce and Ford.
Uwatse’s emergence as the third recipient further reinforces NAJA’s commitment to celebrating individuals whose leadership, enterprise and industry experience have contributed significantly to the evolution of Nigeria’s automotive landscape.
The 19th edition of the Nigeria Auto Industry Awards, organised by NAJA, is scheduled to hold on Thursday, December 3, 2026, at the Civic Centre, Victoria Island, Lagos.
The annual awards bring together automobile manufacturers, distributors, dealers, policymakers, regulators, industry professionals and other stakeholders to celebrate outstanding achievements and recognise excellence across Nigeria’s automotive and transportation sectors.
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Insurance
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.
The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.
Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.
The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.
The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.
Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.
“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.
He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.
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According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.
Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.
The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.
Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.
Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.
The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.
The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.
As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.
Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.
Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.
The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.
The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.
Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.
Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.
The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.
With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Business
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.
The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.
During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.
NMDPRA officials subsequently sealed the facility pending further investigation.
Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.
He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.
Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.
“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.
“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.
The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.
“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.
He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.
According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.
“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.
Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.
Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.
“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.
The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.
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