Foreign capital inflows from BRICS countries into Nigeria surged by 189% in the first half of 2024, reflecting Nigeria’s growing economic ties with the coalition. Data from the National Bureau of Statistics (NBS) shows that capital importation from BRICS nations increased from $438.72 million in the same period in 2023 to $1.27 billion in 2024.
The BRICS group, initially comprising Brazil, Russia, India, China, and South Africa, expanded on January 1, 2024, to include Saudi Arabia, Iran, Egypt, Ethiopia, and the UAE. While Nigeria was not part of this expansion, the country has expressed its intent to join the bloc within the next two years, eyeing increased trade and investment opportunities.
Key Drivers of Capital Inflows
The surge in BRICS investments in Nigeria was largely driven by South Africa and Saudi Arabia. South Africa’s capital inflows rose dramatically by 267%, from $228.09 million in the first half of 2023 to $838.32 million in the same period of 2024. These inflows primarily supported sectors such as financial services, consumer goods, and telecommunications.
Saudi Arabia, a new BRICS member, also saw significant growth in its investments, increasing from $0.03 million in H1 2023 to $147.07 million in H1 2024. Additionally, China, driven by its Belt and Road Initiative, expanded its investments from $0.25 million to $35.64 million during the period, highlighting deepening economic partnerships in infrastructure and trade.
The UAE, another new BRICS member, contributed to the capital surge with inflows rising from $209.41 million in 2023 to $245.19 million in 2024, further cementing its economic ties with Nigeria, particularly in the energy and infrastructure sectors.
Not All BRICS Members Invested
Despite the overall increase, five BRICS members—Brazil, Russia, Iran, Egypt, and Ethiopia—reported no capital investments in Nigeria during both H1 2023 and H1 2024. This could be due to various factors, including regional priorities, geopolitical dynamics, and differing economic interests that have influenced their investment strategies.
Nigeria’s Bid for BRICS Membership
Nigeria remains focused on joining the BRICS coalition. Last year, Vice President Kashim Shettima attended the BRICS summit in South Africa, though no formal bid for membership was made. Foreign Affairs Minister Yusuf Tuggar reaffirmed Nigeria’s intention to join BRICS and possibly the G20, citing the country’s strong economy and population size as key qualifications.
As Nigeria strengthens its economic ties with BRICS nations, it is poised to benefit from increased foreign capital and trade partnerships that could drive further growth in various sectors. The country’s strategic plan to join BRICS underscores its ambition to enhance its global economic standing.
