South African Investment in Nigeria Nears $1 Billion

In the first quarter of 2026, South African investors poured approximately $983.83 million into Nigeria, representing a 90.31% increase from the $516.96 million recorded in the fourth quarter of 2025. This investment surge occurs despite recurring xenophobic attacks against Nigerian migrants in South Africa, which have historically strained diplomatic relations between the two countries.

The National Bureau of Statistics reported that South Africa is Nigeria's third-largest source of foreign capital, following the United Kingdom and the United States. Total capital import into Nigeria reached $10.37 billion in the first quarter of 2026, an 83.83% increase from the same period in 2025.

The financial sector attracted the largest inflow of $7.55 billion, while foreign direct investment remained weak at $135.08 million. Despite political tensions, South African pension funds are exploring investment opportunities in Nigeria, particularly in sectors like petroleum refining and petrochemicals.