The Nigerian Senate has decisively rejected a proposal to use profits from South African companies operating in Nigeria to compensate citizens who suffered losses during recent xenophobic attacks in South Africa. The decision came during a plenary session on Tuesday, July 7, 2026, after a voice vote where the majority of senators opposed the move.
Senator Oshiomhole Advocates Compensation
Senator Adams Oshiomhole had argued that the funds from South African companies such as MTN and DStv should be used to compensate Nigerians whose businesses and properties were destroyed in the attacks. He made this statement in response to comments by South Africa's Minister Khumbudzo Ntshavheni, who ruled out compensation for affected Nigerians. Oshiomhole stated, "Following comments by the South African minister to the effect that compensation will not be paid to those Nigerians whose properties were looted, shops bombed and lives even lost, the government of Nigeria should reciprocate by appropriating the profit accrued from South African companies, including their banks, IBTC and use the money to pay Nigerians."
Senate Rejects Nationalisation Proposal
During the debate, Senator Asuquo Ekpenyong from Cross River South sponsored a motion, while Senator Wasiu Eshinlokun from Lagos Central urged the Senate to consider nationalising South African companies. However, the upper chamber rejected these proposals through a voice vote.
Deputy Senate President Calls for Caution
Deputy Senate President Barau Jibrin argued that the circumstances surrounding the attacks should be properly investigated before Nigeria takes any action. He acknowledged that many Nigerians had lost their lives and properties but maintained that Nigeria must act cautiously. Jibrin said, "Killing people in the name of protest is not something that should be accepted. It is unacceptable; we cannot allow that, but then we need to be careful, particularly because we live in Africa, we set the pace. Whatever we want to do, we need to be very careful."
Background of the Xenophobic Attacks
The xenophobic attacks in South Africa have resulted in significant losses for Nigerian nationals, including destruction of businesses and loss of life. South African Minister Khumbudzo Ntshavheni had previously stated that the South African government would not compensate the affected Nigerians, prompting calls for retaliation from Nigerian lawmakers.
Implications for South African Companies in Nigeria
South African companies operating in Nigeria include MTN, a major telecom giant, and DStv, a pay television service owned by MultiChoice Group. The rejected proposal would have used their profits to compensate victims. The Senate's decision avoids immediate economic repercussions for these firms but leaves open the possibility of future actions pending investigation.
