GROUP 2

Impact of xenophobia on foreign remittances from South Africa to Nigeria

1.Olayiwola Deborah Boluwatife 160901043

2. Summer Jewel Ugoh-Unachukwu 160901042

3. Kuku Ayomide Hamzat 160901032

4. Peter Yemayinse Janet 160901034

5. Sunmola Alameen Ademola 160901027

6. Olabisi Fuad Omogbolahan 160901026

7. Shittu Olamide Mariam 160901036

8. Olaoni Toluwanimi Florence 160901025

9. Ogwo Uchenna Peter 160901030

10. Olamilekan Ganiu Samuel 160901039

11 Adekanmbi Toluwalashe 160901037

12 Igweonu Chiamaka 160901038

13 Babatunde Mubarak 160901041

14 Ibrahim Sodiq Olaniran 160901141

15 Ogunsan Alex Ayomide 160901028

16 Adedeji Ayomilesi 160901031

17 Dabiri Odunayo Abdul-Khaliq 160901029

18 Olajide-Taiwo Abayomi 160901024

19. Anitini Oluwafunmilayo Ruth 160901044

20. Ejeh Emmanuel 160901033

21 Fatusin Christianah 160901023

 INTRODUCTION

The renewed incident of xenophobia which engulfed South Africa and the reprisals which engulfed
Nigeria has dented the image of both countries – Nigeria and South Africa.

Historically, Xenophobia has become a worldwide phenomenon that is been orchestrated by factors Commented [OTJ1]: Kindly add dates, references and facts
both locally and internationally. to back up any claim in your research.

This research aims to examine the effect of xenophobia on the foreign remittances of the Nigerian
economy. Commented [OTJ2]: You didn’t talk about foreign
remittances and any link between them. Maybe the
Nigerian industry in South Africa or the amount of
remittances from countries in South Africa
STATEMENT OF PROBLEM

Various forces are at play as contributors fueling the physical and psychological abuse on both
foreigners in South Africa. While most African nations attained political freedom in the post 1060 period, Commented [OTJ3]: Source??
social economic development lagged behind with poverty, unemployment and inequality on the rise.
These challenges are known as the evil triplets and these caused many Africans to migrate to better off
countries like South Africa in search of greener pastures. Commented [OTJ4]: The problem here Is not clear
enough, there should be a reason you are intrigued by the
topic. This should be the core here.

EMPIRICAL

Akinola confirmed that South Africa accommodates the largest number of asylum seeker in the world Commented [OTJ5]: Year and reference????
thus the scramble for job opportunities and scarce resources between South Africans and non-South
Africans did not only fuel tensions but also led to xenophobia and xenophobic attacks aimed at causing
bodily harm. He also argued that this situation was further perpetuated by the political illiteracy on the
part of South Africans with regard to African politics. These incudes the decisive roles played by other
African nations (especially Nigeria i.e. the Mandela tax) in the liberation of South Africa.

It’s against this background that this research seeks to understand the impact of xenophobia on
remittances from Nigerians living in South Africa and the Nigerian economy using the Granger Causality
Model and a few interviews from distinguished lecturers in the University of Lagos. Commented [OTJ6]: The literature referenced isn’t
enough and you also need to link your empirical reasoning
to the literatures. What method had been used and which
can be deployed

JUSTIFICATION

We are conducting this research in order to consider the effect of these xenophobic attacks on the
Nigerian economy and its socio economic effects on Nigeria because for an economy to grow we have to
understand those factors which are lagging.
RESEARCH QUESTIONS
Commented [OTJ7]: Is it a group work?
Commented [OTJ8]: This has changed the topic. Also, the
justification is more like when you are trying to see reasons
your own research is more appropriate and the impact of
your report on the subject matter.
 1. Does xenophobia affect the economy?
2. Does xenophobia affect remittances? Commented [OTJ9]: You migjht need to examine the
3. To what extent does xenophobia affect remittances? effect of xenophobia on pseudo variables of remittances or
the causes of xenophobia which is economic disparities etc.
4. To what extent does xenophobia affect net factor income from abroad?

GAP IN LITERATURE Commented [OTJ10]: This can come in between your

empirical but with a different topic
Prof. Akinola A.O (2014)

He presented a summary based on perceived xenophobic attacks which rose from the 2008/2009
economic depression which has led to high spread of jealousy among South Africans against non-South
Africans and has caused physical attacks and fatalities.

He also sourced from an interview that most of the reasons for the attacks could be captured in the
quote “They are taking our business, their businesses are successful because they are involved in drugs,
their stuff is cheap hence people buy from foreign shops” (interview No 10, workshop, 28 August 2015)

However, the criticisms from his work are the fact that it is outdated and he is of the opinion that the
xenophobic attacks are mostly caused by economic factors.

Musuva (2014)

According to him xenophobia takes place because of crime, poverty and unemployment. The current
attacks were as a result of South Africans feeling that foreigners are taking their jobs thereby
dominating their economy.

Moshood Ishola (2015)

He is of the opinion that South Africans blame foreigners for the high unemployment rate and that
South Africans are angry that foreigners are benefitting from their country through their small
businesses. But however South African mega businesses are flourishing in most parts of Africa without
any hindrance, for example MTN group is a South African multinational mobile telecommunications
company operating in many African countries in which Nigeria has its biggest markets. MTN Nigeria has
generated 37% of the total revenue for the MTN group worldwide as at 2015. Also DSTV will be no
different in terms of where most of its revenue comes from.
Despite all this it remains shameful that the Nigerian economy doesn’t gain a large chunk of this earning
even though its citizens are the major contributors to the success of these companies.

The criticisms of his work include the fact that the information is outdated and he only gave specific
information on the impact of Xenophobia on the South African economy and not the Nigerian economy.

DATA ANALYSIS

Hypothesis testing;

Ho: xenophobia doesn’t affect the remittances to the Nigerian economy

H1: xenophobia affects the remittances to the Nigerian economy

We would be testing these using the Granger Causality Model Commented [OTJ11]: What is Granger Causality and how
is it the best approach and it influences in the interpretation
METHODOLOGY of your results

We would be using the qualitative and quantitative model. Under the quantitative model we would be
using the Granger Causality Model to examine two variables; the number of xenophobic attacks as the Commented [OTJ12]: Explain the model, write you
independent variable and the level of foreign remittances as the dependent variable based on formulas etc
secondary data of the given variables. Under the qualitative we would be using interviews.

SOURCES OF DATA

 Scholarly articles and international news channels

 Special websites
 Social media platforms

CONCLUSIONS

Why this research?

 We are trying to find ways to prevent the reoccurrence of xenophobia.

 To find a solution to the menace of xenophobia because of its effect on the Nigerian economy.

Problems faced

Paucity of data due to the asymmetrical distribution of data, information and statistics in the Nigerian
economy.

We however plan to mitigate this problem by supplementing our quantitative data with the qualitative
data.