On January 17, 2025, Nigeria became a partner member of BRICS, a move that is generally regarded as significant for increasing commerce, investment, and diplomatic clout. Although Nigeria’s low Export competitiveness and excessive reliance on crude oil present serious obstacles, stakeholders have recognised the possibility of economic gains. Since its founding in 2009, BRICS has grown to include 10 full members and 9 partner nations, which together account for more than half of the world’s population and almost 25% of its GDP. Nigeria and the BRICS countries—China, India, and South Africa in particular—have a long history of trading, but because of structural inefficiencies, these links frequently result in Trade deficits.
Experts have pointed out how BRICS may help Nigeria by providing financing for infrastructure, exchanging technology, and opening up a variety of commercial routes. Nigeria’s capacity to fully benefit from this cooperation is, however, constrained by issues including inadequate infrastructure, high Manufacturing costs, and dependency on the dollar. Geopolitical threats, possible trade disputes with Western countries, and the possibility of Nigeria turning into a dumping ground for lower-priced goods from the more competitive BRICS economies are further worries. In order to optimise the benefits of BRICS, stakeholders emphasise the necessity of Infrastructure development, economic diversification, and practical diplomacy.
Reservations on how well BRICS fits with Nig’s geopolitical, econ position.
The successful cooperation exhibited by the BRICS countries may serve as an example for Nigeria. One example is the New Development Bank (NDB), which was created by the BRICS and has provided over $30 billion in funding for Sustainable Development and infrastructure projects in affiliated nations. For instance, South Africa’s energy capacity has increased dramatically and its dependency on coal has decreased because to NDB loans used to create Renewable Energy projects. With the help of the NDB, India has also used the BRICS alliances to modernise its urban infrastructure through smart city projects.
Furthermore, Nigeria might follow Brazil’s example of improving its agricultural sector by implementing the agricultural technological innovations that Brazil shared with the BRICS, which have helped nations like India increase food production. Although joining the BRICS has many advantages, there are reservations about how well it fits with Nigeria’s geopolitical and economic position. The US and the EU, Nigeria’s main commercial partners, have both criticised BRICS for what they see as an anti-Western stance. Considering Nigeria’s reliance on AGOA (African Growth and Opportunity Act) for exports to the United States, which are worth over $3 billion a year, aligning with BRICS could put strain on these partnerships.
Striking a balance between BRICS partnership and current int’l ties.
China’s hegemony within BRICS may also increase Nigeria’s reliance on Chinese goods, worsening its trade imbalance. Nigeria’s dollar-dominated trade and creditor arrangements may clash with BRICS’ aim for de-dollarization, which includes pushing the Chinese yuan, according to critics, making financial operations more difficult. Nigeria must strike a balance between its BRICS partnership and its current international ties in order to prevent unforeseen geopolitical and economic repercussions. Nigeria has to put infrastructure development and Economic Diversification first if it wants to take full advantage of its BRICS alliance.
Infrastructure investment, value-added export promotion, trade competitiveness enhancement, Technology transfer facilitation, and currency diversification are among the policy recommendations. Nigeria should concentrate its BRICS involvement on topics that will benefit the country both now and in the future. Nigeria can collaborate with China and India to implement technology for smart infrastructure, renewable energy, and the expansion of the digital economy. For instance, Nigeria’s national ID system could be improved by following the model of India’s Aadhaar digital identity system, which would improve public service delivery.
Related Article: Nig. formally joins BRICS for econ prospects
Through partnerships with Brazil, Nigeria may be able to implement cutting-edge farming methods and equipment to boost agricultural output and lessen dependency on food imports. Nigeria’s Economic Stability depends on the BRICS countries, especially Russia, offering military assistance and technological solutions to counter Security concerns. To promote trade and Investment inflows, Nigeria should align its trade policies with the BRICS frameworks, emphasising the removal of obstacles and the development of bilateral agreements. Nigeria may establish itself as a major actor in BRICS and benefit economically and geopolitically while reducing related dangers by taking advantage of these opportunities and resolving its structural issues.