How Nigerian immigrants boost South Africa’s economy and continue to play key roles

In recent years, the economic relationship between Nigeria and South Africa has grown substantially, demonstrating the importance of cooperation between these two leading African nations.

A study by the Organisation for Economic Co-operation and (OECD) highlights that immigrants make significant contributions to South Africa’s economy. Contrary to popular belief, immigration does not reduce employment opportunities for native-born South Africans. In fact, certain immigrant groups may even increase job creation for locals.

Thanks to their high employment rates, immigrants also raise per capita income and contribute positively to the government’s fiscal balance through taxes. The OECD study further recommends better integration policies to combat discrimination and maximise immigrants’ economic impact.

Nigerians in South Africa: A vital community

Nigerians form one of the largest immigrant groups in South Africa, with estimates suggesting between 500,000 Nigerians staying in the country. This Nigerians come from diverse backgrounds, such as entrepreneurs, professionals, students, and skilled workers who have made substantial contributions to South Africa’s economy and society.

These individuals come from diverse backgrounds, including entrepreneurs, professionals, students, and skilled workers, all of whom have made substantial contributions to South Africa’s economy and society. Despite public perception often unfairly associating Nigerians with crime, it is important to recognize their entrepreneurial drive, professional excellence, and academic achievements.

Annually since 2019, the Nigeria Community Excellence Award (NECA) is held to recognise Nigerians who have made significant achievement in their various fields. Government needs to support such initiative as way of changing the narratives about Nigerians living in South Africa.

Economic contributions of Nigerians

Nigerians are highly entrepreneurial, establishing thriving businesses across various sectors. They are also well-represented in medicine, engineering, technology, law, and the creative industries. Litanies of studies also reflect that Nigerians are more likely to start businesses and create jobs.

Challenges and misconceptions

While some Nigerians have been involved in criminal activities such as drug trafficking and fraud, these cases have been proven not to represent the entire Nigerian community. And much of this generalisation which is not rebutted especially from Nigerians themselves have fuelled xenophobia and overshadowed the positive impact of many Nigerians who contribute meaningfully to South African society.

Nigerian investments and untapped potential

Recent Nigerian investments, such as Access Bank’s acquisition of Bidvest Bank for R2.8 billion, highlight the growing economic ties between the two countries.

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Nigeria leads Africa’s Fintech revolution, yet South Africans, particularly Black entrepreneurs, have yet to fully leverage this expertise. Nigerians control key sectors of their own economy and could serve as valuable mentors for South African entrepreneurs.

Nigeria could be a model for South Africa’s entrepreneurs

Unlike South Africa, where government programmes often drive entrepreneurship, millions of Nigerians have built businesses through sheer determination. This self-reliant business culture could inspire Black South African entrepreneurs to take control of their economic future.

The Nigeria High Commission strongly believes that greater collaboration between Nigerian and South African professionals, businesses, and academics could spark a new wave of Pan-African economic growth, thus has pencilled down for 2025 to organize the Nigeria Professional Forum which aims at aims at bringing together Nigerian professionals residing in South Africa.

This event seeks to create a platform for networking, knowledge exchange, and fostering a sense of community among Nigerian professionals across various sectors. Ultimately, Nigerians in South Africa are far more than the stereotypes suggest.

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Their contributions in business, education, and innovation are vital to the country’s growth. By fostering cooperation over competition, South Africa could unlock even greater economic potential, with Nigerians as key partners in progress.

As President Cyril Ramaphosa recently alluded, the future of South Africa’s economy could be brightened through strengthened relations with Nigeria, marking a new era of mutual prosperity. I strongly believe the bilateral partnership needs to be strengthened.

Abu-Ali Ndah

Commercial Counsellor at the Nigeria High Commission,

Pretoria, South Africa