Foreign capital inflows into Nigeria from BRICS countries surged by 189% in the first half of 2024, amid Nigeria’s continued efforts to secure its place within the expanding BRICS coalition.
Capital imports from BRICS countries rose from $438.72 million in the first half of 2023 to $1.27 billion in the same period in 2024, according to data analysis by the National Bureau of Statistics (NBS).
The BRICS group was initially made up of Brazil, Russia, India, China, and South Africa, but on January 1, 2024, it expanded to include Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE). It expanded by formally welcoming countries as new members.
Argentina was also invited, but declined to join, bringing the total number of member countries to 10.
Although Nigeria has not joined this wave of inclusion, it recognizes the potential benefits that BRICS membership could bring to trade and investment flows and is making determined efforts to join the group within the next two years. continues.
What the data shows The surge in BRICS capital inflows was mainly driven by South Africa and Saudi Arabia, which accounted for the largest increase in the first half of 2024. South African capital inflows jumped from $228.09 million in the first half of 2023 to $838.32 million in the first half of 2024, a significant increase of 267%. South Africa’s dominant position in capital flows suggests the strength of bilateral relations, particularly in financial services, consumer goods and telecommunications. Saudi Arabia, a new BRICS member, experienced a significant increase in capital inflows from just $0.03. Similarly, China, which was a relatively small investor last year, saw its capital imports into Nigeria jump from $250,000 to $35.64 million over the same period. China’s investment expansion can be attributed to the global belt. Among the newly joined BRICS members, the UAE also contributed to the increase, with inflows increasing from $209.41 million in the first half of 2023 to the first half of 2023. 245.19 million in 2024. These inflows reflect deepening economic ties between Nigeria and the Gulf states, particularly in energy, infrastructure and trade. 50% of BRICS countries have zero foreign investment in Nigeria.
Although investments from BRICS countries increased overall, half of the countries on the BRICS list did not record any foreign capital inflows into Nigeria in both the first half of 2023 and the first half of 2024.
These countries include Brazil, Russia, Iran, Egypt, and Ethiopia. Despite being members of the BRICS coalition, these countries did not make capital investments in Nigeria during the period under review.
This lack of inflows can be attributed to a variety of factors, including differences in economic priorities, regional focus, and geopolitical considerations that can impact investment strategies.
What you need to know In November last year, Foreign Minister Yusuf Tugar was reported to have said that Nigeria plans to become a member of the BRICS economic bloc and join the G20 group within the next two years.
The minister said Nigeria qualifies to join organizations such as BRICS and the G20, noting that the country’s economic size and population are appropriate criteria. Last year, Nigeria’s Vice President Kassim Shettima attended the BRICS summit in South Africa but did not participate. It promoted membership when it admitted new members from African countries, including Ethiopia and Egypt. In September this year, Foreign Minister Tugar reiterated the country’s interest in joining BRICS, the influential economic group consisting of Brazil, Russia and Brazil. India, China, South Africa.
Tager explained that Nigeria has not yet formally applied for membership in BRICS, but will do so “at the appropriate time.”
He noted that joining the bloc was certainly of interest to the Bola Tinubu administration.
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