jaycent:
What else do you want to know? The Tanzanians whooped their fvcking arses and they ran to kibera slum to chill for sometime! You should have ask were is Tasha!

That's the funniest name on nairaland. How can a guy's name be Tasha? Anyway, the Tanzanians have put him out of circulation.

Don’t know where Kenyans got the idea that they had a stronger private sector than Nigeria... weird, kinda funny

obaaderemi:
Small countries usually do better in such things than highly populated countries especially in Africa. We've been through this before. And its a shame that a small country like Little India has a hdi of just .555 Nigeria is a 200m behemoth! Come on, boy. Think.

This Kur guy is a proper ignoramus, we've been through all these before. He's talking about HDI when Kenya is doing so poorly on that area with just 0.555, Nigeria not far behind with 0.552, and yet Nigeria is 4 times the population of Kenya.

Kur17:


Where are those lazy people, all negative comments they can type about Kenya is kibera and food food food food ...very lazy people with abnormal food appetite just like Nigerians

You are just a big fool? You don't want to give up that the Tanzanians has exposed you useless kenyans arses! You useless lazy kenyans have nothing to offer but big mouth. Useless Kenyans!

obaaderemi:
That's the funniest name on nairaland. How can a guy's name be Tasha? Anyway, the Tanzanians have put him out of circulation.

Hahahahaha Obaa you take style wicked oh

Daejoyoung:

This Kur guy is a proper ignoramus, we've been through all these before. He's talking about HDI when Kenya is doing so poorly on that area with just 0.555, Nigeria not far behind with 0.552, and yet Nigeria is 4 times the population of Kenya.

You mean smaller countries shld have higher HDI? How many smaller countries than Kenya in Africa has a higher HDI than Kenya?? One or two. ...and many issues have been repeatedly said here, so nothing is "through"

Yungkid101:

Any Big company can sponsor BET, no big deal there bro. The MenzGold is just like MMM & SwissGold, SCAM.

but the entire financial ecosystem is a scam
nothing new here

Yungkid101:

Lwkmd. Ignorant Ghanaian. Just ask yourself why your Leaders are Ass Licking Nigerian Government asses

the only leaders licking ass are Nigerian leaders oo
have you forgotten that
just look around you

nwoke37:
Don’t know where Kenyans got the idea that they had a stronger private sector than Nigeria... weird, kinda funny

l don't blame them though, it's very easy for them to think that way because in all they do they compare Nigeria to their small counties, so when they hear the worst about Nigeria, ( usually criticism by Nigerians) they then begin to imagine they are totally better.
l wonder why a small country like Kenya which doesn't even have a recognized trade city center in Africa, nor does she have some of the richest Africans in business would have people like this Kur guy who stupidly imagines they have a stronger private sector than Nigeria, it's simply not their fault, it's the level to which the Nigerians and the Nigerian leaders have brought the country to.
One was even bold enough to compare their textile industry to that of Nigeria, until l gave him a long list of Nigerian fashion brands which has gone far beyond Nigeria, even patronized by the likes of Michelle Obama and other elites and he shut up for good. lkeja alone has a great line of such businesses.
So it's always like that, Nigerians do not celebrate their little achievements but are usually overwhelmed by the problems ( which is a good thing sometimes).
But because of this, it is easy for these African nations to think they are definitely ahead, and the problems unfortunately are usually too outstanding sometimes that they mask the order present in the chaos.

Kur17:


You mean smaller countries shld have higher HDI? How many smaller countries than Kenya in Africa has a higher HDI than Kenya?? One or two. ...and many issues have been repeatedly said here, so nothing is "through"

Nigeria is approximately 4 times the size of Kenya, we are not your mates.

Yungkid101:


LWKMD. Same Ghana that closed so many Ghana Banks?? Which Bank is Ghana's biggest Bank currently??

how does that help you
the central bank can redraw the license of who ever that operate in a manner that they are not suppose to

jaycent:
You are just a big fool? You don't want to give up that the Tanzanians has exposed you useless kenyans arses! You useless lazy kenyans have nothing to offer but big mouth. Useless Kenyans!

Apart from saying "kibera" and "food" what else have they exposed us with??, ...any processed goods in their shopshelves come from Kenya, the other day we had a post election skirmishes they lacked even matchboxes...this is facts, do your research if you wish to

Daejoyoung:

Nigeria is approximately 4 times the size of Kenya, we are not your mates.

Yes in population...but I hope you know what happened to your last national census, and it's the same thing that happened to your GDP estimations, manipulation

nwoke37:
Don’t know where Kenyans got the idea that they had a stronger private sector than Nigeria... weird, kinda funny

Again when they hear that the Nigerian economy is totally dependent on oil, such that it would collapse without oil, they misunderstand everything completely.
They think Nigeria is so dependent on oil that she is completely useless in other sectors with nothing happening at all, but what the critics are saying is that given the size of our economy, we are too dependent on the oil sector, which is now the pivot for other sectors. lt doesn't mean oil is the only thing happening in Nigeria. Nigeria is not diversified but she is way more diversified than Algeria and Libya, and also Angola to a smaller extent.

obaaderemi:
Why do you fear the Tanzanians so much? You little Indians have become so disoriented since the Tanzanians showed up.

You really believe we are scared of Tanzanians or even Nigerians? Did you forget Asana already? How can we fear you and beat you in sprints at home? Tanzanians also think we are scared? Have they posted anything here to make scared? Obaboon stop thinking with your arse!

nwoke37:
Don’t know where Kenyans got the idea that they had a stronger private sector than Nigeria... weird, kinda funny

When you come to Kenya you don't see mtn, shop rite, castle beer etc. That's where we got the idea.

Kur17:


Apart from saying "kibera" and "food" what else have they exposed us with??, ...any processed goods in their shopshelves come from Kenya, the other day we had a post election skirmishes they lacked even matchboxes...this is facts, do your research if you wish to

Desperate consolation. The Tanzanians can't help themselves forget about Nigeria. Even Obaboon, the little Indians can't help him. He is very desperate right about now. Lol

Kur17:


You mean smaller countries shld have higher HDI? How many smaller countries than Kenya in Africa has a higher HDI than Kenya?? One or two. ...and many issues have been repeatedly said here, so nothing is "through"

Arm chair economists I told you.

gallivant:


Arm chair economists I told you.

These folks are out of this world

obaaderemi:
This maasai is an ignorant fool


How can you know when you are busy eating hyena.

Listen carefully, we will not eat snails, dogs and monkeys because it's a culinary delight in France. You guys are not Europeans. Disgusting!!

Yobeezy:


That guy keeps on yelling foolishly 'show us this show us that' when he can't even stand out to showcase what his country has achieved.

Typical

gallivant:


Listen carefully, we will not eat snails, dogs and monkeys because it's a culinary delight in France. You guys are not Europeans. Disgusting!!

gallivant:


When you come to Kenya you don't see mtn, shop rite, castle beer etc. That's where we got the idea.

Nigerians are South Africa's slaves

South Africa's Nigerian slaves.

South Africa has joined the older imperial powers in looting Nigeria’s resources and dominating its economy in just a decade.

South Africa has played an intimate role in the recent Nigerian elections. Despite what the ANC government claims, South Africa’s foreign policy towards Africa is not based on Pan-Africanism or anti-imperialism; it is rather based on promoting South Africa’s expanding business interests on the continent. In reality, the South African state’s interests, in both the domestic and African arena, have become fused with those South Africa’s capitalist elite. The ruling party in Nigeria has served the South African capital and the state’s interests well. It has facilitated the process whereby South Africa has become a major economic player in Nigeria in only 8 years.

From the very start, the recent Nigerian elections, which saw Olusegun Obasanjo placing his hand picked successor, Umaru Yar’ Adua, into the Presidential palace, were mired in controversy. The ballot papers for the election, which were printed in South Africa, contained no counter foils or serial numbers – features which would have made vote rigging difficult. In fact, only 40 million ballot papers were even printed; this for an election where over 65 million people had registered to vote [1]. To make matters worse, only 30% of these ballot papers were ever sent to Nigeria; the rest remained lying in a warehouse in Johannesburg on day of the elections [2]. Of the ballot papers that were sent to Nigeria, most were rushed off to areas that were and are strongholds of Obasanjo’s and Yar’ Adua’s ruling party, the People’s Democratic Party. In contrast, areas where there was strong opposition to the government, such as the Niger Delta, did not receive enough ballot papers. On the day of the election, independent observers noted that vote rigging and fraud were rife. Yar’ Adua supporters were even seen stuffing fraudulent ballot papers into ballot boxes at voter stations across the county [3]. Intimidation of opposition supporters was also widespread. In fact, over 200 people, mainly members of the opposition parties, were murdered in the run up to the elections [4]. This situation that led most independent observers to declare the elections deeply flawed.

The South African government, however, had a very different view of the elections. Spearheaded by Thabo Mbeki, it came out and said the elections had been free and fair. Indeed, South Africa was the first country to congratulate and offer support to the ruling party’s candidate, Yar’ Adua, on ‘winning’ the elections [5]. Immediately following this, he was invited to Tshwane to have a personal congratulatory meeting with Thabo Mbeki. The question is: why would the South African government fall over itself to congratulate Yar’ Adua on ‘winning’ an election that was so clearly rigged? The answer to this question lies in South Africa’s policy towards Africa, in the form of New Partnership for Africa’s Development (NEPAD), the relationship that it has with the ruling party in Nigeria, and the expansionist agenda that South African corporations and parastatals have in Nigeria.


South Africa’s bi-lateral interventions in Nigeria

Prior to 1999, South Africa had a poor political relationship with Nigeria. At the time, Nigeria was ruled by a military junta that was politically hostile towards South Africa. This, however, dramatically changed with the end of the military government and the election of the People’s Democratic Party’s leader, Obasanjo, as the Nigerian president in 1999. From that point on, the South African state built a strong, but unequal relationship with the People’s Democratic Party government under the leadership of Obasanjo and Yar’ Adua. This relationship was also helped by the fact that Thabo Mbeki had formed a strong friendship with Obasanjo and Yar’ Adua when he was in exile in Nigeria from 1976 to 1979 [10].


In October 1999, a South Africa-Nigeria Bi-National Commission was also established by the South African and Nigerian governments. The Bi-National Commission has been meeting twice a year ever since, and aims to increase the amount of trade and investment between South Africa and Nigeria. The Deputy Presidents of South Africa and Nigeria head up the commission. Representatives from all government departments attend the meetings along with top South African business people. At the meetings, trade and investment opportunities in Nigeria are identified and plans are put in place so that they can be realised. In this way, many deals that have proved very lucrative for South African companies and parastatals have been facilitated through the Bi-National Commission.

All of the above measures have been extremely valuable in furthering South Africa’s business interests in Nigeria. Indeed, the South African state has used its diplomatic power and the relationship that it has with the Nigerian government to assist South African corporations and parastatals to become big players in the Nigerian economy.

South African corporations and parastatals have become big players in Nigeria

Prior to 1999, there were only 4 South African companies operating in Nigeria [17]. This situation has dramatically changed with the assistance of the South African state, and the signing of bi-lateral agreements and the establishment of a Bi-National Commission. Today there are now over 100 South African companies doing business in Nigeria [18]. Within a mere 8 years, South African companies have become major players in almost every sector of Nigerian economy.

The biggest investment by South African companies in Nigeria has been in the telecommunications sector. In 2001, MTN was awarded a license by the Nigerian government to operate a cell phone network in the country. In return, MTN had to pay licensing fees of over US $ 285 million. Added to this, MTN has spent a further US $ 1 billion on setting up its operations in Nigeria [19]. Currently, MTN is the largest cellular network company in Nigeria and has over 10 million subscribers [20]. This has seen MTN making massive profits in the country. In 2004 alone, MTN recorded an after tax profit of over R 2.4 billion in Nigeria [21]. Such profits have led other South African telecommunications companies to also set up shop in Nigeria in a bid to get a piece of the very lucrative pie. This year, Telkom announced that it was buying Multilinks, which operates a wireless network in Nigeria, for US $ 200 million [22].

South African companies have also become dominant in Nigeria’s construction sector. Entech, a Stellenbosch based engineering company, headed a consortium of South African companies that were awarded a tender worth R 2.1 billion from the Lagos State government to redevelop the Bar Beach and Victoria Island area outside of Lagos. The idea is to turn the area into a complex akin to the V&A Waterfront [23]. Another South African construction firm, Group Five, was awarded a R 585 million deal to build a power station in Nigeria for the Ibom Power company [24].

Many large South African companies have also invaded the tourism and leisure sector in Nigeria. Under NEPAD, the South African parastatal, the Industrial Development Corporation (IDC) has become one of the largest investors in Nigeria’s tourist sector. To date it has invested over US $ 1.4 billion in tourism and telecommunications ventures in Nigeria [25]. Another major player in the tourism sector is the South African company Bidvest. Through its subsidiary, Tourvest, it has purchased one of the biggest tourism companies in Nigeria, Touchdown Travel. The biggest development in the Nigerian tourism sector, however, is the massive Tinapa Project in the Cross River State. This project falls under the auspices of NEPAD and has the full backing of the South African and Nigerian governments. The project entails the construction of a massive entertainment complex, consisting of 4 shopping centres, 5 bulk warehouses, 4 hotels, and a casino, and is set to cost over US $ 300 million [26]. The major stakeholders in this development are South African companies, such as the Standard Bank, Tsogo Sun, Broll, Johncom and Southern Sun. Indeed, the centre pieces of this development will be a 300 room hotel owned by Southern Sun and a casino owned by Tsogo Sun. Another South African company, Broll, will be the leasing agents of the complex. The South African state has provided direct assistance to these companies so that they can carry out this project. Indeed, the state owned IDC has provided finance, and has underwritten these companies’ investments in this project.

In the Nigerian retail sector, South African companies also loom large. Massmart and Shoprite have opened a number of stores in Nigeria. Added to this, Johncom has established a number of stores selling books, CDs and DVDs in Nigeria [27]. A number of South African companies have also entered into the fast food business, including Famous Brands, St Elmo’s and Nandos. In fact, South African companies control almost 50% of the international fast food franchising industry in Nigeria, and have out competed companies from both the European Union and the United States. Considering that the fast food industry in Nigeria is worth over US $ 2.5 billion a year, this control over the fast food franchising business in Nigeria has meant that South African companies have made super profits 28]. The South African property management group, Broll, has also landed a deal to manage 594 retail fuel stations across Nigeria [29]. This deal too is worth millions of dollars.

South African companies are also heavily involved in Nigeria’s media and entertainment sector. DSTV is a major force in the television industry and accounts for 90% of the viewers that watch satellite TV in Nigeria [30]. This has seen DSTV growing into the sixth largest company listed on the Lagos Stock Exchange. Johncom has also eagerly entered into the Nigerian entertainment sector. It has established cinema complexes throughout Nigeria. One of these cinema complexes, in Lagos, cost US $ 40 million dollars to develop [31]. Along with this, Johncom has purchased one of the largest daily newspapers in Nigeria, Business Day [32]. South Africa’s parastatals have also ventured into the entertainment industry. For example, Arivia.com was provided with a contract worth R 140 million by the Nigerian government to assist with the running of that country’s lottery.

Since adopting NEPAD, the Nigerian state has been accelerating the privatisation process in the country. South African parastatals have been one of the major beneficiaries of this process. Indeed, through its parastatals, the South African state has become directly involved in accumulating capital in Nigeria. For example, as part of the move towards privatisation, the Nigerian government provided Umgeni Water with R 350 million contract to manage Port Harcourt’s water services for 3 years. At the moment, this contract could possibly be extended to 20 years [33]. If it is extended, it would be a massive money-spinner for Umgeni Water and the South African state.

As part of the privatisation of the energy sector, the Nigerian government allowed the state owned ESKOM to buy a 51% stake in the Nigerian Electric Power Authority (NEPA). With this, ESKOM received contracts worth US $ 165 million from the Nigerian government. Eskom has also entered into a partnership with Shell in Nigeria to upgrade and operate gas powered power stations. The Nigerian government has granted Eskom and Shell a US $ 540 million contract to operate power stations in Port Harcourt [34]. It is very interesting that ESKOM, a company owned by the South African state, wished to enter into a partnership with Shell considering Shell’s appalling human rights and environmental record in Nigeria. Indeed, Shell has destroyed the environment of the Niger Delta and has been directly responsible for over 3 000 oil spills in that area since 1976. Added to this, Shell, along with the Nigerian government, has been implicated in the murder of over 2 000 activists in the Niger Delta since the 1980s [35]. Clearly, the South African government and ESKOM are not interested in this; what they are interested in, however, is profit.

Prior to 1999, the Nigerian government awarded all of the oil concessions in the country to companies from the United States, the United Kingdom, France and Italy. As a result, companies from the Northern imperial powers dominated Nigeria’s oil sector. After 1999, this situation began to change, in part because of the close relationship that the new Nigerian government had, and has, with the South African government. Companies from the Northern imperial powers, although still dominant, no longer have a complete monopoly over the oil concessions in Nigeria; companies from South Africa, China and India have also got a piece of the action. One of the first actions of Obasanjo’s government in 1999 was to award the South African state the right to market 50 000 barrels of Nigerian oil a day. In 2003, Thabo Mbeki intervened to ensure that this was increased to 120 000 barrels of oil a day. However, the South African government has selected to pass on the rights to market this oil to a shadowy company, the South African Oil Company, which is registered in the Cayman Islands. The South African Oil Company in the Cayman Islands is 70% owned by a Nigerian-American businessman, Jakes Lawal. Who owns the other 30%, however, is a mystery [36]. Indeed, the Cayman Island law system protects the identity of the shareholders that own the other 30%. Lawal, however, has close connections with leading ANC figures. In fact, the Mail and Guardian, reported that rumours have been circulating that the ANC directly benefited from this deal. Indeed, it is interesting that the Cayman Island’s South African Oil Company also has a sister company registered in South Africa. It is perhaps no co-incidence that some of the shareholders in this sister company happen to be leading ANC figures. These shareholders are:

• Nomusa Mufamadi, wife of Sydney Mufamadi
• Hintsa Siwisa, brother-in-law of the Eastern Cape Premier
• Miles Nzama, leading figure in the ANC Fundraising Trust
• and Brian Casey, a confidant of Penuell Maduna [37]

Other, more genuine South African companies have also enjoyed receiving oil concessions from the Nigerian government. Ophir Energy, owned by Tokyo Sexwale’s Mvelephanda Resources, has been given the right to drill for oil in several blocks in Nigeria. This is bound to add to Ophir’s current value of over R 14 billion [38]. The parastatal PetroSA has also been given the right to drill in a number of oil blocks. Added to this, PetroSA owns Brass Exploration Unlimited in Nigeria. Through this company, PetroSA and the South African state have a 40% interest in the Abana oilfield off the Nigerian coast. Currently, the Abana oilfield is producing 22 000 barrels of oil a day [39]. Some South African companies have also entered into partnerships with well established multinational oil companies operating in Nigeria. For example, SASOL has entered into a 50/50 partnership with Chevron to develop a gas to fuel plant at Chevron’s Escravos oil terminal [40]. This plant will cost US $ 1.3 billion and is planned to come on line this year [41]. It will initially produce 33 000 barrels of fuel a day, but this will be increased to as much as 120 000 barrels a day over the next 10 years [42]. A number of South African firms have also become involved in providing services to the oil multinationals in Nigeria. Most notably, Grinaker established an oil-rig fabrication yard in Port Harcourt in 2000. It assembles and services the oil rigs that multinational oil companies use in the Niger Delta at that facility [43].

The Nigerian people have not benefited from South Africa’s expanding investment

[b]Despite all this investment, the people of Nigeria have not benefited. This is partly because South African corporations operating in Nigeria are allowed to repatriate the profits that they make out of Nigeria. Added to this, many of Nigeria’s economic sectors have become completely foreign owned, which has had negative implications for the country’s sovereignty. The majority of South African corporations also source most of the products that they use or sell in Nigeria through South Africa and not locally. This means they operate in an enclave and do not promote the creation of up stream or down stream industries in Nigeria. South African companies operating in Nigeria have also created very few jobs. The jobs that they have created have tended to be casual. At many South African owned companies in Nigeria, workers have been denied the right to join trade unions [44]. For example, despite its massive profits, MTN has only created 500 permanent jobs. Most of its employees are casual or temporary workers, and it has denied all of its workers the right to join a trade union [45].[/b]

South African companies have also been involved in blatant profiteering and looting in Nigeria. Indeed, MTN charges the highest rates in the world for cellular phone calls in Nigeria [46]. Along with this, some South African companies have implemented heavy handed tactics to recover revenue owed to them by Nigerian consumers [47]. In fact, ESKOM/NEPA has hired 10 South African companies to collect the debt that it was, and is, owed by Nigerian consumers . Some South African companies have even been involved in, or were complacent in, human rights abuses in Nigeria. For example, in 2005 there was a community protest outside of the Escravos oil terminal where Chevron and SASOL are establishing their gas to fuel plant. Representatives of these companies at the Escravos oil terminal called in Nigerian security forces to break up the demonstration. On arrival, the Nigerian forces opened fire on the crowd, killing one person and injuring a further 30. Some of the protesters were then severely beaten with rifle butts and other weapons. Added to this, access to the healthcare facilities at the Escravos terminal was denied to the injured protesters. The result was that it took several hours for the injured protesters to find their way to a hospital [48].

Conclusion

From the above, it is clear that the ruling party in Nigeria has served the South African capital and the state’s interests well. It has facilitated the process whereby South Africa has become a major economic player in Nigeria in only 8 years. Indeed, South Africa has joined the older imperial powers in looting Nigeria’s resources and dominating its economy.

https://www.pambazuka.org/governance/south-africa%E2%80%99s-role-nigeria-and-nigerian-elections

https://allafrica.com/stories/201603090499.html

Just30:
how does that help you
the central bank can redraw the license of who ever that operate in a manner that they are not suppose to

Lol dem just dey close una Banks like No man's Business

Just30:
the only leaders licking ass are Nigerian leaders oo
have you forgotten that
just look around you

Lwkmd even una President go dey laugh you

nwoke37:
Don’t know where Kenyans got the idea that they had a stronger private sector than Nigeria... weird, kinda funny

You're shocked because you're used to some internet rumours where you massage your ignorance,visit other nations to stop this empty bragging.

gallivant:


When you come to Kenya you don't see mtn, shop rite, castle beer etc. That's where we got the idea.

Most of the south African companies are dominating their economic space that they're bragging off to be Nigeria's private sectors..

nwoke39:


You're clealry confused... You can have a rich government/country but a poor population ie corruption...Nigeria's large poor population comes from its huge population.. btw Nigeria has a bigger middle class than Kenya

I mentioned that Nigerian companies are more multinational than Kenyan companies... wasn't referring to [b]foreign[/b]companies..
It's obvious Nigeria has a stronger/bigger private sector than Kenya... The data is there

BTW Nigeria has just received the free wifi from Google... one of the few countries in the world

Your huge population is the cause of your own problems,no wonder there's a big income disparity between the rich and the poor.

The only known Nigerian multinational companies are some of your banks the likes of eco bank and the rest,those banks aren't such that viable in other countries like here in Kenya due to stiff competition from our local banks and the mobile money technology.

Kenya too has multinational companies like banks for example equity which run its operations in eastern and central Africa,so nothing spectacular with this multinational thing.

obaaderemi:

This maasai is a bigger fool than I thought.
https://www.tralac.org/discussions/article/11778-recent-fdi-trends-in-africa-summary-analysis-of-the-unctad-world-investment-report-2017.html

FDI inflows remain unequally distributed
across the continent – with only five
countries (Angola, Egypt, Nigeria, Ghana
and Ethiopia) hosting 57 percent of
continent’s total FDI inflows, while Africa
accounts for 3.4 percent share of global
FDI.

Useless and illetrate bloggers from Nigeria are used to posting uncertain figures on the web.
Your link shows Nigeria's FDI score is 3.5billion USD while this link which a Nigerian happens to be a blogger shows Nigeria's FDI score is 808 million USD....
These figures are just manipulated as just You guys do on your fake GDP..

https://www.ceicdata.com/en/indicator/kenya/foreign-direct-investment

Lionessza6:



LeSudAfricaine, come and see what our smart brothers and sisters export to other countries.

hhe bana , the idiot is bragging about killing people for human oegans !? Can't believe it hey anything is worth chest beating right?

TayserMahiri:
South Africa's Nigerian slaves.

South Africa has joined the older imperial powers in looting Nigeria’s resources and dominating its economy in just a decade.

South Africa has played an intimate role in the recent Nigerian elections. Despite what the ANC government claims, South Africa’s foreign policy towards Africa is not based on Pan-Africanism or anti-imperialism; it is rather based on promoting South Africa’s expanding business interests on the continent. In reality, the South African state’s interests, in both the domestic and African arena, have become fused with those South Africa’s capitalist elite. The ruling party in Nigeria has served the South African capital and the state’s interests well. It has facilitated the process whereby South Africa has become a major economic player in Nigeria in only 8 years.

From the very start, the recent Nigerian elections, which saw Olusegun Obasanjo placing his hand picked successor, Umaru Yar’ Adua, into the Presidential palace, were mired in controversy. The ballot papers for the election, which were printed in South Africa, contained no counter foils or serial numbers – features which would have made vote rigging difficult. In fact, only 40 million ballot papers were even printed; this for an election where over 65 million people had registered to vote [1]. To make matters worse, only 30% of these ballot papers were ever sent to Nigeria; the rest remained lying in a warehouse in Johannesburg on day of the elections [2]. Of the ballot papers that were sent to Nigeria, most were rushed off to areas that were and are strongholds of Obasanjo’s and Yar’ Adua’s ruling party, the People’s Democratic Party. In contrast, areas where there was strong opposition to the government, such as the Niger Delta, did not receive enough ballot papers. On the day of the election, independent observers noted that vote rigging and fraud were rife. Yar’ Adua supporters were even seen stuffing fraudulent ballot papers into ballot boxes at voter stations across the county [3]. Intimidation of opposition supporters was also widespread. In fact, over 200 people, mainly members of the opposition parties, were murdered in the run up to the elections [4]. This situation that led most independent observers to declare the elections deeply flawed.

The South African government, however, had a very different view of the elections. Spearheaded by Thabo Mbeki, it came out and said the elections had been free and fair. Indeed, South Africa was the first country to congratulate and offer support to the ruling party’s candidate, Yar’ Adua, on ‘winning’ the elections [5]. Immediately following this, he was invited to Tshwane to have a personal congratulatory meeting with Thabo Mbeki. The question is: why would the South African government fall over itself to congratulate Yar’ Adua on ‘winning’ an election that was so clearly rigged? The answer to this question lies in South Africa’s policy towards Africa, in the form of New Partnership for Africa’s Development (NEPAD), the relationship that it has with the ruling party in Nigeria, and the expansionist agenda that South African corporations and parastatals have in Nigeria.


South Africa’s bi-lateral interventions in Nigeria

Prior to 1999, South Africa had a poor political relationship with Nigeria. At the time, Nigeria was ruled by a military junta that was politically hostile towards South Africa. This, however, dramatically changed with the end of the military government and the election of the People’s Democratic Party’s leader, Obasanjo, as the Nigerian president in 1999. From that point on, the South African state built a strong, but unequal relationship with the People’s Democratic Party government under the leadership of Obasanjo and Yar’ Adua. This relationship was also helped by the fact that Thabo Mbeki had formed a strong friendship with Obasanjo and Yar’ Adua when he was in exile in Nigeria from 1976 to 1979 [10].


In October 1999, a South Africa-Nigeria Bi-National Commission was also established by the South African and Nigerian governments. The Bi-National Commission has been meeting twice a year ever since, and aims to increase the amount of trade and investment between South Africa and Nigeria. The Deputy Presidents of South Africa and Nigeria head up the commission. Representatives from all government departments attend the meetings along with top South African business people. At the meetings, trade and investment opportunities in Nigeria are identified and plans are put in place so that they can be realised. In this way, many deals that have proved very lucrative for South African companies and parastatals have been facilitated through the Bi-National Commission.

All of the above measures have been extremely valuable in furthering South Africa’s business interests in Nigeria. Indeed, the South African state has used its diplomatic power and the relationship that it has with the Nigerian government to assist South African corporations and parastatals to become big players in the Nigerian economy.

South African corporations and parastatals have become big players in Nigeria

Prior to 1999, there were only 4 South African companies operating in Nigeria [17]. This situation has dramatically changed with the assistance of the South African state, and the signing of bi-lateral agreements and the establishment of a Bi-National Commission. Today there are now over 100 South African companies doing business in Nigeria [18]. Within a mere 8 years, South African companies have become major players in almost every sector of Nigerian economy.

The biggest investment by South African companies in Nigeria has been in the telecommunications sector. In 2001, MTN was awarded a license by the Nigerian government to operate a cell phone network in the country. In return, MTN had to pay licensing fees of over US $ 285 million. Added to this, MTN has spent a further US $ 1 billion on setting up its operations in Nigeria [19]. Currently, MTN is the largest cellular network company in Nigeria and has over 10 million subscribers [20]. This has seen MTN making massive profits in the country. In 2004 alone, MTN recorded an after tax profit of over R 2.4 billion in Nigeria [21]. Such profits have led other South African telecommunications companies to also set up shop in Nigeria in a bid to get a piece of the very lucrative pie. This year, Telkom announced that it was buying Multilinks, which operates a wireless network in Nigeria, for US $ 200 million [22].

South African companies have also become dominant in Nigeria’s construction sector. Entech, a Stellenbosch based engineering company, headed a consortium of South African companies that were awarded a tender worth R 2.1 billion from the Lagos State government to redevelop the Bar Beach and Victoria Island area outside of Lagos. The idea is to turn the area into a complex akin to the V&A Waterfront [23]. Another South African construction firm, Group Five, was awarded a R 585 million deal to build a power station in Nigeria for the Ibom Power company [24].

Many large South African companies have also invaded the tourism and leisure sector in Nigeria. Under NEPAD, the South African parastatal, the Industrial Development Corporation (IDC) has become one of the largest investors in Nigeria’s tourist sector. To date it has invested over US $ 1.4 billion in tourism and telecommunications ventures in Nigeria [25]. Another major player in the tourism sector is the South African company Bidvest. Through its subsidiary, Tourvest, it has purchased one of the biggest tourism companies in Nigeria, Touchdown Travel. The biggest development in the Nigerian tourism sector, however, is the massive Tinapa Project in the Cross River State. This project falls under the auspices of NEPAD and has the full backing of the South African and Nigerian governments. The project entails the construction of a massive entertainment complex, consisting of 4 shopping centres, 5 bulk warehouses, 4 hotels, and a casino, and is set to cost over US $ 300 million [26]. The major stakeholders in this development are South African companies, such as the Standard Bank, Tsogo Sun, Broll, Johncom and Southern Sun. Indeed, the centre pieces of this development will be a 300 room hotel owned by Southern Sun and a casino owned by Tsogo Sun. Another South African company, Broll, will be the leasing agents of the complex. The South African state has provided direct assistance to these companies so that they can carry out this project. Indeed, the state owned IDC has provided finance, and has underwritten these companies’ investments in this project.

In the Nigerian retail sector, South African companies also loom large. Massmart and Shoprite have opened a number of stores in Nigeria. Added to this, Johncom has established a number of stores selling books, CDs and DVDs in Nigeria [27]. A number of South African companies have also entered into the fast food business, including Famous Brands, St Elmo’s and Nandos. In fact, South African companies control almost 50% of the international fast food franchising industry in Nigeria, and have out competed companies from both the European Union and the United States. Considering that the fast food industry in Nigeria is worth over US $ 2.5 billion a year, this control over the fast food franchising business in Nigeria has meant that South African companies have made super profits 28]. The South African property management group, Broll, has also landed a deal to manage 594 retail fuel stations across Nigeria [29]. This deal too is worth millions of dollars.

South African companies are also heavily involved in Nigeria’s media and entertainment sector. DSTV is a major force in the television industry and accounts for 90% of the viewers that watch satellite TV in Nigeria [30]. This has seen DSTV growing into the sixth largest company listed on the Lagos Stock Exchange. Johncom has also eagerly entered into the Nigerian entertainment sector. It has established cinema complexes throughout Nigeria. One of these cinema complexes, in Lagos, cost US $ 40 million dollars to develop [31]. Along with this, Johncom has purchased one of the largest daily newspapers in Nigeria, Business Day [32]. South Africa’s parastatals have also ventured into the entertainment industry. For example, Arivia.com was provided with a contract worth R 140 million by the Nigerian government to assist with the running of that country’s lottery.

Since adopting NEPAD, the Nigerian state has been accelerating the privatisation process in the country. South African parastatals have been one of the major beneficiaries of this process. Indeed, through its parastatals, the South African state has become directly involved in accumulating capital in Nigeria. For example, as part of the move towards privatisation, the Nigerian government provided Umgeni Water with R 350 million contract to manage Port Harcourt’s water services for 3 years. At the moment, this contract could possibly be extended to 20 years [33]. If it is extended, it would be a massive money-spinner for Umgeni Water and the South African state.

As part of the privatisation of the energy sector, the Nigerian government allowed the state owned ESKOM to buy a 51% stake in the Nigerian Electric Power Authority (NEPA). With this, ESKOM received contracts worth US $ 165 million from the Nigerian government. Eskom has also entered into a partnership with Shell in Nigeria to upgrade and operate gas powered power stations. The Nigerian government has granted Eskom and Shell a US $ 540 million contract to operate power stations in Port Harcourt [34]. It is very interesting that ESKOM, a company owned by the South African state, wished to enter into a partnership with Shell considering Shell’s appalling human rights and environmental record in Nigeria. Indeed, Shell has destroyed the environment of the Niger Delta and has been directly responsible for over 3 000 oil spills in that area since 1976. Added to this, Shell, along with the Nigerian government, has been implicated in the murder of over 2 000 activists in the Niger Delta since the 1980s [35]. Clearly, the South African government and ESKOM are not interested in this; what they are interested in, however, is profit.

Prior to 1999, the Nigerian government awarded all of the oil concessions in the country to companies from the United States, the United Kingdom, France and Italy. As a result, companies from the Northern imperial powers dominated Nigeria’s oil sector. After 1999, this situation began to change, in part because of the close relationship that the new Nigerian government had, and has, with the South African government. Companies from the Northern imperial powers, although still dominant, no longer have a complete monopoly over the oil concessions in Nigeria; companies from South Africa, China and India have also got a piece of the action. One of the first actions of Obasanjo’s government in 1999 was to award the South African state the right to market 50 000 barrels of Nigerian oil a day. In 2003, Thabo Mbeki intervened to ensure that this was increased to 120 000 barrels of oil a day. However, the South African government has selected to pass on the rights to market this oil to a shadowy company, the South African Oil Company, which is registered in the Cayman Islands. The South African Oil Company in the Cayman Islands is 70% owned by a Nigerian-American businessman, Jakes Lawal. Who owns the other 30%, however, is a mystery [36]. Indeed, the Cayman Island law system protects the identity of the shareholders that own the other 30%. Lawal, however, has close connections with leading ANC figures. In fact, the Mail and Guardian, reported that rumours have been circulating that the ANC directly benefited from this deal. Indeed, it is interesting that the Cayman Island’s South African Oil Company also has a sister company registered in South Africa. It is perhaps no co-incidence that some of the shareholders in this sister company happen to be leading ANC figures. These shareholders are:

• Nomusa Mufamadi, wife of Sydney Mufamadi
• Hintsa Siwisa, brother-in-law of the Eastern Cape Premier
• Miles Nzama, leading figure in the ANC Fundraising Trust
• and Brian Casey, a confidant of Penuell Maduna [37]

Other, more genuine South African companies have also enjoyed receiving oil concessions from the Nigerian government. Ophir Energy, owned by Tokyo Sexwale’s Mvelephanda Resources, has been given the right to drill for oil in several blocks in Nigeria. This is bound to add to Ophir’s current value of over R 14 billion [38]. The parastatal PetroSA has also been given the right to drill in a number of oil blocks. Added to this, PetroSA owns Brass Exploration Unlimited in Nigeria. Through this company, PetroSA and the South African state have a 40% interest in the Abana oilfield off the Nigerian coast. Currently, the Abana oilfield is producing 22 000 barrels of oil a day [39]. Some South African companies have also entered into partnerships with well established multinational oil companies operating in Nigeria. For example, SASOL has entered into a 50/50 partnership with Chevron to develop a gas to fuel plant at Chevron’s Escravos oil terminal [40]. This plant will cost US $ 1.3 billion and is planned to come on line this year [41]. It will initially produce 33 000 barrels of fuel a day, but this will be increased to as much as 120 000 barrels a day over the next 10 years [42]. A number of South African firms have also become involved in providing services to the oil multinationals in Nigeria. Most notably, Grinaker established an oil-rig fabrication yard in Port Harcourt in 2000. It assembles and services the oil rigs that multinational oil companies use in the Niger Delta at that facility [43].

The Nigerian people have not benefited from South Africa’s expanding investment

[b]Despite all this investment, the people of Nigeria have not benefited. This is partly because South African corporations operating in Nigeria are allowed to repatriate the profits that they make out of Nigeria. Added to this, many of Nigeria’s economic sectors have become completely foreign owned, which has had negative implications for the country’s sovereignty. The majority of South African corporations also source most of the products that they use or sell in Nigeria through South Africa and not locally. This means they operate in an enclave and do not promote the creation of up stream or down stream industries in Nigeria. South African companies operating in Nigeria have also created very few jobs. The jobs that they have created have tended to be casual. At many South African owned companies in Nigeria, workers have been denied the right to join trade unions [44]. For example, despite its massive profits, MTN has only created 500 permanent jobs. Most of its employees are casual or temporary workers, and it has denied all of its workers the right to join a trade union [45].[/b]

South African companies have also been involved in blatant profiteering and looting in Nigeria. Indeed, MTN charges the highest rates in the world for cellular phone calls in Nigeria [46]. Along with this, some South African companies have implemented heavy handed tactics to recover revenue owed to them by Nigerian consumers [47]. In fact, ESKOM/NEPA has hired 10 South African companies to collect the debt that it was, and is, owed by Nigerian consumers . Some South African companies have even been involved in, or were complacent in, human rights abuses in Nigeria. For example, in 2005 there was a community protest outside of the Escravos oil terminal where Chevron and SASOL are establishing their gas to fuel plant. Representatives of these companies at the Escravos oil terminal called in Nigerian security forces to break up the demonstration. On arrival, the Nigerian forces opened fire on the crowd, killing one person and injuring a further 30. Some of the protesters were then severely beaten with rifle butts and other weapons. Added to this, access to the healthcare facilities at the Escravos terminal was denied to the injured protesters. The result was that it took several hours for the injured protesters to find their way to a hospital [48].

Conclusion

From the above, it is clear that the ruling party in Nigeria has served the South African capital and the state’s interests well. It has facilitated the process whereby South Africa has become a major economic player in Nigeria in only 8 years. Indeed, South Africa has joined the older imperial powers in looting Nigeria’s resources and dominating its economy.

https://www.pambazuka.org/governance/south-africa%E2%80%99s-role-nigeria-and-nigerian-elections

https://allafrica.com/stories/201603090499.html

Yet Nigeria fined MTN 5.2 billion dollars... and other South African companies have been threatened since the xenophobic attacks on Nigerians in South Africa