News
Trade Imbalance: Dark Cloud Hangs over Nigeria, SA Relations
Like a wild wind, South African companies have completely overrun Nigeria leaving the country and its nationals at the outskirt of the economy seen as one of the largest and most financially rewarding on the African continent, Nigeria CommunicationsWeek can now reveal.
The reverse is the case in South Africa as Nigerians and their businesses suffer discrimination and exclusion.
South Africa’s invasion and resultant control of the economy was helped by Nigeria’s desperation for foreign investments and hasty opening up of the sectors before the right conditions are present.
Nigeria CommunicationsWeek gathered that unlike South Africa, there is currently no restriction on foreign nationals or foreign entities doing business in Nigeria as they are only required to incorporate a local vehicle registered with Nigerian Investment Promotion Commission (NIPC) before commencing business.
But in South Africa, there have been reports of how South African authorities insist on stringent measures against Nigerian businesses.
For instance, Main One, a trans-Atlantic submarine fibre-optic cable network promoted by Main Street Technologies was reportedly denied landing on the ground that nationals of the former apartheid enclave do not have controlling shares in the company.
Seizing the opportunities presented by Nigeria’s lax environment, South African entrepreneurs who have built up capacities (technical, financials and other know-how) during the prolonged apartheid regime started heading to Nigeria in the mid 90s.
Unlike their home country with a little over 47-million people, the market in Nigeria with more than 150 million people is still largely untapped.
Nigeria CommunicationsWeek gathered today, from information and communications technologies (ICTs), shopping, tourism, construction, energy, aviation, entertainment to revenue collection, South African firms are in control.
In South Africa, apart from hundreds of Nigerian expatriates in that country’s schools, hospitals, manufacturing firms, there is no record of Nigerian businesses.
Even the ballot papers used in the 2007 general elections in Nigeria were printed in South Africa.
The bad news is that rather than enjoy the benefits of the influx of the foreign companies, Nigerian economy is under pressure as the foreign firms determine what to produce and at what price Nigerians must buy.
Most of the foreign businesses are also perversely established as portfolio investment in paper assets that could quickly flow back out of the country.
Patrick Omokhidion, a security adviser said, “the security and economy implication will be far reaching at the end of the day.”
He said further “if South Africans suddenly withdraw from the country, Nigeria will be worse than Somalia, recall what happened to Asian countries when some portfolio investors left overnight.”
Nigeria CommunicationsWeek gathered that the control of country’s economy by the South Africans started sore-footedly at the end of the obnoxious apartheid regime in 1994 and has over the last 11 years turned to an invasion.
Nigeria’s notoriety as haven for scams, worsening human rights records and one of the world’s most corrupt nations did not deter the aggressive South Africans. Not even the dearth of infrastructure.
The South Africans have been painstaking and deliberate in choosing the sectors they are dominating now. The sectors they play in are all essential.
Tola Awe, a public affairs commentator, said that South Africans are filling the voids left by Nigeria’s heartless and visionless administrators with fixation for accumulation of wealth for their children unborn.
But who will blame the South Africans who have kept faith with Nigeria as the Western world, shocked by the brazen pillage of Nigeria by its own citizens shunned the largest country on the African continent. Successive military rule and record of policy summersaults did not help matters.
Suddenly realizing that bilateral relations between the two countries are skewed in favour of the South African, Nigeria is now crying foul.
But as Nigeria cry, South African entrepreneurs smile to the banks here while there were little or no opportunities for Nigerians to do real business in the opposite direction.
Goodluck Jonathan, acting President was even more vocal November last year at celebrations to mark a decade of bilateral ties under the aegis of the Nigeria/South Africa Bi-National Commission (BNC).
“Some Nigerians have questioned the very rationale for the BNC if our relations and the benefits they confer are so skewed and if South African authorities are engaged in alleged acts of discrimination against Nigerian visitors, residents and businesses in South Africa,” he said.
Patiently waiting for Jonathan to finish, Bongi Maria Ntuli, South Africa’s deputy Trade and Industry minister said that Nigeria is her country’s second largest trading partner on the continent.
“As an open economy, we welcome new investment and collaborative partnerships in key areas of opportunity – all uniquely poised to deliver real competitive advantage,” Ntuli said.
BNC, founded a little over 10 years is still dogged by problems of handshake across the borders, visa restrictions and unnecessary bickering.
Since the launch of the BNC, trade between the two African economic giants has leapt from $16.5 million in 1999 to $2.1 billion in 2008.
Nigeria CommunicationsWeek investigations however revealed that the balance of trade is in favour of the South Africans.
Proffering solution, Emmanuel Ekuwem, president, Association of Telecommunications Companies of Nigeria (Atcon) urged the two countries go to the negotiation table and iron out the grey areas in their relationship.
He insisted that there must a symbiotic relationship between the two countries to ensure that Africa’s resources remains in Africa.
“Nigeria economy is the largest economy second to South Africa in the continent, the relationship between the two countries should be win-win, so as Nigeria opens up her borders economy to the South Africans, there must be reciprocity by South Africa,” Ekuwem added.
Most Nigerians agree that the country should get more from the South African businesses which have freely made record profits that are sent back home to subsidize the expensive life style of their promoters.
They are also united that in call for appropriate rules and customs to handle trade between countries or between private companies across borders.
ValueJet is set to expand its fleet with the introduction of Boeing aircraft. The airline in a statement said that the introduction of Boeing aircraft was part of its effort at increasing capacity, strengthen its regional operations and position the airline for wider connectivity across Africa.
The acquisition of Boeing aircraft is coming after its successful operations with the Bombardier CRJ aircraft, which have supported its domestic and regional expansion since it commenced commercial operations.
Omololu Majekodunmi, Managing Director of ValueJet, said the move would enable it to accommodate more passengers and cargo, operate longer routes and respond to the growing demand for air travel within Nigeria and across the African continent.
Majekodunmi, also said that the fleet expansion was a defining moment in the company’s journey, noting that the introduction of the Boeing aircraft would open a new chapter for the carrier.
According to him, ValueJet has remained focused on building a safe, reliable and customer-oriented airline since its entry into the market, adding that the transition to Boeing aircraft was being supported by investments in manpower development and technical capacity.
He said: “The arrival of Boeing aircraft into our fleet represents an exciting new chapter for ValueJet. Since commencing operations with our CRJ aircraft, we have remained focused on building a safe, reliable, and customer-centric airline.
“As we prepare to induct the Boeing aircraft, we are also investing in our people by ensuring our engineers receive world-class training that will enable us to maintain the highest standards of safety, reliability, and operational excellence. This investment positions us for the next phase of our growth and reinforces our commitment to delivering an exceptional travel experience.”
According to Majekodunmi, as part of preparations for the fleet upgrade, ValueJet’s aircraft maintenance engineers are already undergoing intensive technical training on Boeing aircraft in Lagos.
The training, delivered by Boeing through its partnership with Nigeria’s Federal Ministry of Aviation and Aerospace Development, focuses on the Boeing 737 Next Generation (737NG), covering aircraft systems, maintenance procedures, safety standards and operational best practices.
The airline said the training would equip its engineers with the required expertise to maintain the new aircraft type in line with global aviation standards, including European Union Aviation Safety Agency (EASA) requirements.
Also speaking, Adekunle Soname, Chairman of ValueJet, said the introduction of Boeing aircraft was not just a fleet expansion programme, but a strategic investment aimed at supporting the airline’s long-term growth ambitions.
With the planned arrival of the Boeing aircraft, ValueJet is targeting expansion into more African destinations, including Abidjan in Côte d’Ivoire, Libreville in Gabon, Douala in Cameroon, as well as cities in Kenya and South Africa.
The airline said the new routes would form part of its strategy to strengthen intra-African connectivity and provide passengers with more travel options.
The Federal High Court in Abuja on Wednesday, July 15, ordered the final forfeiture of 48 properties linked to the immediate past Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, who is facing money laundering charges.
Abubakar Malami
The court, in a judgment delivered by Justice Joyce Abdulmalik, held that the properties, allegedly acquired with proceeds of crime, should be permanently seized by the federal government.
It held that Malami, who served as Justice Minister from November 11, 2015, to May 29, 2023, under former President Muhammadu Buhari’s administration, failed to rebut the reasonable suspicion that the properties were acquired through unlawful activities. The court dismissed contentions that some of the affected properties belonged to the larger Malami family in Kebbi State. According to the court, the legal issue was not “who owns the property, but how legitimate were the funds used to acquire them”.
Justice Abdulmalik held that Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act empowered the court to order the final forfeiture of illicitly acquired assets to the government. The judgment followed an application filed by the Economic and Financial Crimes Commission (EFCC).
Although the anti-graft agency sought the forfeiture of 57 choice properties it said were traced to the former minister, the court held that there was credible evidence establishing the genuine ownership of nine of the listed properties. The EFCC and Malami had adopted their final written addresses in the matter on May 26.
It will be recalled that the anti-graft agency had earlier secured an interim forfeiture order for the assets, valued at over N212 billion. According to the anti-graft agency, the properties, spread across three states (Kebbi, Kano, and Kaduna) as well as the Federal Capital Territory, Abuja—were believed to have been acquired with proceeds of crime. In an ex parte motion brought before the court, the agency said the interim order was needed as a precursor to the final forfeiture of the properties to the federal government.
Malami is currently facing a 16-count money laundering charge. He was arraigned before the court alongside his son, Abdulaziz, and one of his wives, Hajia Bashir Asabe. The defendants were alleged to have laundered public funds totalling about N9 billion.
According to the EFCC, the former Justice Minister, in a bid to hide his proceeds of crime, resorted to acquiring choice properties in various cities and states. Having granted the interim forfeiture order, the court directed the agency to publish, within 14 days, a notice inviting anyone with an interest in any of the properties to appear before it and show cause why they should not be forfeited to the government.
Dissatisfied with the EFCC’s application, Malami’s legal team approached the court to have it set aside, insisting the properties were legitimately acquired. He told the court that the properties were appropriately listed in various asset declaration forms he filed with the Code of Conduct Bureau (CCB), insisting the EFCC had failed to adduce any prima facie evidence that they were acquired through proceeds of crime.
Accusing the EFCC of suppressing material facts, Malami maintained that the agency moved against him over properties that “were lawfully acquired post-appointment of the respondent/applicant and declared with the Code of Conduct Bureau as legitimate assets of the respondent/applicant, in compliance with the 5th Schedule to the Constitution of the Federal Republic of Nigeria, in 2019 and 2023”.
He argued that the interim forfeiture order was obtained through “manifest exaggeration, malicious inflation of the value of the assets, and unreasonable and incompetent valuation deliberately manipulated to mislead the court, negatively affecting its discretion in granting an order based on manipulated facts and conclusions deliberately cooked up by the applicant/respondent (EFCC)”.
While adopting his final brief of argument, counsel to the EFCC prayed the court to grant the final forfeiture order, relying on a 47-paragraph affidavit and 46 exhibits filed in support of the motion. The EFCC counsel argued that Malami had failed to satisfactorily explain the legitimate sources of the assets and urged the court to order their permanent forfeiture.
In response, the counsel representing the former AGF urged the court to dismiss the application and set aside the interim forfeiture order earlier granted. The defense counsel relied on a counter-affidavit deposed to by Malami to argue that the EFCC’s case was founded on suspicion rather than credible evidence.
The court-ordered list of confiscated properties includes:
A luxury duplex at Amazon Street within Cadastral Zone A06, Maitama, purchased in December 2022 at N500,000,000.00 (value after enhancement, N5,950,000,000).
A two-wing, large storey building situated at No. 3, Onitsha Crescent, Area 11, Garki, Cadastral Zone A03, Abuja (formerly Harmonia Hotels Limited), FCT, purchased in December 2018 at N7,000,000,000.00.
Plot 683, Jabi District, Cadastral Zone B04, comprising a five-storey building (now Luxurious Meethaq Hotels Ltd, Jabi, with 53 rooms/suites), purchased in September 2020 at carcass level at N850,000,000.00, with an additional N300,000,000 to take possession (value after completion, N8,400,000,000).
Property No. 3130, within Cadastral Zone A04, Asokoro District, FCT, Abuja, comprising terraces, purchased in January 2021 at N360,000,000.00.
Property No. 3, Rhine Street, Maitama, Abuja (Meethaq Hotels Ltd, Maitama, with 15 rooms), purchased in February 2018 at N430,000,000.00 (current value after rehabilitation, N12,950,000,000).
Plot No. 1241B, Asokoro District Zone (No. 11A Yakubu Gowon Crescent), Asokoro District, purchased in July 2021 at N325,000,000.00.
Shop No. C82, Citiscape — Shariff Plaza, Plot 739, Cadastral Zone A07, Aminu Kano Crescent, Wuse II, FCT, Abuja, purchased in March 2024 at N120,000,000.00.
No. 4, Ahmadu Bello Way, Nasarawa GRA, Kano, purchased in December 2022 at N300,000,000.00.
Plot 157, Lamido Crescent, Nasarawa GRA, Kano, purchased in July 2019.
A plaza, commercial toilets, laundry facility, and warehouse tanks adjacent to Birnin Kebbi Market, purchased in 2021 at N100,000,000.00.
100 hectares of land along Birnin Kebbi–Jega Road, purchased in 2020 at N100,000,000.00.
A four-bedroom bungalow, Gesse Phase, Birnin Kebbi, purchased in 2023 at N101,000,000.00.
Shops Nos. A36 and B3, Vegas Mall, Wuse 2, Abuja, purchased in July 2023 at N158,000,000.00.
No. 26, Babbi Drive, BUA Estate, Abuja, purchased in 2022 at N136,000,000.00.
No. 27, Efab Estates Avenue, 59th Crescent, Gwarimpa, Abuja, purchased in January 2016 at N120,000,000.00.
A four-bedroom house with two-room boys’ quarters at No. 10B, Doka Crescent, Abakpa GRA, Kaduna, purchased in January 2018 at N40,000,000.00.
Plot No. 13, Ipent 7 Estate, Karsana District, Abuja, purchased in June 2018 at N85,000,000.00.
A four-bedroom duplex with boys’ quarters at No. 12, Yalinga Street, off Adetokunbo Ademola Crescent, Wuse II, Abuja, purchased in October 2018 at N150,000,000.00.
Two warehouse shops, B40 and B46, Wuse Market, Abuja, purchased in July 2020 at N50,000,000.00.
Twin houses at Zone E, Apo Legislative Quarters, Cadastral Zone B01, Plot 14014, Gudu District, Abuja, purchased between February and May 2017 at N250,000,000.00.
Properties acquired by the Khadimiyya for Justice & Development Initiative at Academic Garden City, Birnin Kebbi, sold by the Federal Housing Authority Mortgage.
Nine units of three-bedroom bungalows, three units of two-bedroom bungalows, and 5.4 hectares of land, purchased between February and September 2023 at N187 million.
A Federal Capital Territory (FCT) High Court sitting in Maitama has granted bail to former Chairman of the Code of Conduct Tribunal (CCT), Mr Danladi Umar, in the sum of N100 million with one surety in like sum.
Danladi Umar
Justice Peter Kekemeke granted the bail on Wednesday following Umar’s arraignment by the Economic and Financial Crimes Commission (EFCC) on a four-count charge bordering on alleged abuse of office and conferring undue advantage on himself while serving as Chairman of the CCT and Chairman of the CCT Tender Board.
Umar was arraigned by the EFCC on July 9.
During Wednesday’s proceedings, counsel to the defendant, Mr Sunday Edward, urged the court to admit his client to bail pending the determination of the case, citing relevant provisions of the 1999 Constitution and the Administration of Criminal Justice Act (ACJA).
Edward argued that the defendant was entitled to bail as guaranteed under the law.
However, EFCC counsel, Mr Christopher Mshelia, opposed the bail application, urging the court to deny bail and order an accelerated hearing of the matter.
In his ruling, Justice Kekemeke held that bail could not be denied based on mere suspicion that an accused person might commit another offence if released.
The judge said bail could only be refused on established grounds, including the likelihood of the defendant evading trial or interfering with witnesses.
Justice Kekemeke noted that Umar was no longer in a position to intimidate witnesses, adding that the prosecution failed to provide sufficient evidence showing that he would abscond or interfere with the trial process.
He held that it would be wrong for the court to deny bail based on an unsubstantiated belief.
Consequently, the judge admitted Umar to bail in the sum of N100 million with one surety in like sum.
The court directed that the surety must own a property within the jurisdiction of the court.
The matter was adjourned until Oct. 29 for trial.
Umar served as Chairman of the Code of Conduct Tribunal from 2011 until 2024, when he was removed from office by President Bola Tinubu following recommendations by the National Judicial Council.
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