The Federal Government of Nigeria rejected Donald Trump’s threats to impose sanctions on nations that are part of the BRICS economic bloc, which includes South Africa, China, Russia, India, Brazil, and recently added Egypt, Ethiopia, Iran, and the United Arab Emirates. Nigeria has joined BRICS with the goal of becoming a full member in two years. The bloc is also working on a new currency project that could be implemented in 2025 and would compete with the US dollar. Trump threatened to impose 100% Tariffs on nations that supported the action, claiming that the US Economy would strike back against any attempts to subvert the dollar’s hegemony.
Nigerian officials reacted to Trump’s remarks by highlighting their nation’s status as a non-aligned and multipolar state and reaffirming their sovereignty and right to form partnerships that serve their interests. On behalf of Nigeria’s Foreign Affairs Ministry, Alkasim Abdulkadir reaffirmed the country’s dedication to taking part in international organisations that promote economic development. Trump’s warnings were dismissed as meaningless by experts such as retired diplomat Sola Abolurin, who urged Nigeria to point out the economic advantages of joining BRICS and disregard outside pressure. Former Ambassador Yemi Farounbi, on the other hand, cautioned Nigeria to act in its own best interests.
Nig’s connections with Western nations may suffer if it aligns with BRICS.
Significant economic prospects as well as possible difficulties are presented by Nigeria’s bid to join BRICS. Nigeria’s Trade ties could be improved by aligning with BRICS, particularly as China and India, two BRICS members, are Nigeria’s biggest trading partners, making up over 52.2% of Nigeria’s total trade. This collaboration may help Nigeria’s economy overcome important obstacles by promoting more foreign direct investment, technological transfer, and Infrastructure development. Furthermore, by taking part in BRICS programs like the New Development Bank, Nigeria could be able to access different funding sources for development projects, which could lessen its reliance on Western financial institutions.
However, there are risks involved in this process. Nigeria’s current relationships with Western countries may suffer if it aligns with BRICS, which could have negative economic effects. The political and economic variety of the BRICS may also make it difficult to create unified policies that serve Nigeria’s unique interests. Concerns like those voiced by former US President Donald Trump are supported by analysts who contend that BRICS’ attempts to create a new currency to compete with the US Dollar could cause global financial markets to become unstable and threaten the dollar’s hegemony, creating economic uncertainty for nations like Nigeria that are thinking about forging closer ties with the bloc.
Supporters see the action as crucial to strengthening emerging economies.
Furthermore, the possible advantages of Nigeria’s relationship with BRICS are demonstrated by specific facts. Foreign capital inflows into Nigeria from the BRICS nations increased by 189% in the first half of 2024, from $438.72 million in the same time in 2023 to $1.27 billion. This notable rise highlights the real advantages of working with the BRICS countries and demonstrates increased interest in Nigeria’s economic potential. People around the world have responded to BRICS’ currency ambitions with a mixture of scepticism, caution, and hope. Supporters see the action as a big step towards strengthening emerging economies, lowering reliance on the US currency, and creating a multipolar global financial system.
To combat Western sanctions, Russia and China, two countries who are ardent supporters of dedollarization, have increased their local currency commerce. BRICS nations like India, on the other hand, have taken a more cautious approach. Indian Foreign Minister Subrahmanyam Jaishankar has clarified that the bloc’s goal is to investigate workable alternatives in order to improve economic cooperation, not to weaken the dollar. On the other hand, financial institutions and Western countries have voiced worries about the possible instability that such a change could bring about.
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A strong economic and political alignment is necessary to create a new currency, although the International Monetary Fund (IMF) has cautioned that this may be difficult given the variety among BRICS. Such actions, according to US analysts, would impede International Trade and perhaps lead to retaliatory economic actions. Furthermore, smaller countries who depend on the US dollar for stability are concerned about the impact on their economy of a large decline in the dollar’s dominance. They fear Inflation and a loss of access to international financial markets.