Nigeria’s foreign capital inflows from BRICS nations have experienced a remarkable surge of 189% in the first half of 2024, reflecting the country’s strategic efforts to secure membership in the expanded BRICS coalition.
Data from the National Bureau of Statistics indicates that capital importation from BRICS countries climbed from $438.72 million in the first six months of 2023 to $1.27 billion during the same period this year.
The BRICS group, originally consisting of Brazil, Russia, India, China, and South Africa, officially expanded on January 1, 2024, by adding five new members: Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates.
This expansion has further intensified Nigeria’s pursuit of increased economic collaboration and investment opportunities within the coalition.
Argentina was also invited to join the expanded BRICS coalition but declined membership, bringing the total number of member countries to ten.
Although Nigeria was not included in this latest expansion, the country is committed to joining the group within the next two years.
Nigerian officials recognize the significant trade and investment opportunities that BRICS membership could provide, and they continue to pursue their goal of integration into the coalition.
The surge in BRICS capital inflows to Nigeria was largely driven by significant contributions from South Africa and Saudi Arabia in the first half of 2024.
Inflows from South Africa skyrocketed from $228.09 million in H1 2023 to $838.32 million in H1 2024, reflecting a substantial 267% increase.
This growth underscores South Africa’s strong position in capital flows, indicating robust bilateral relations in sectors such as financial services, consumer goods, and telecommunications.
Meanwhile, Saudi Arabia, a new BRICS member, experienced a remarkable increase in capital inflows, rising from just $0.03 million to $147.07 million during the same timeframe.
This rapid growth highlights Saudi Arabia’s emerging role in Nigeria’s investment landscape following its recent induction into the coalition.
China, previously a relatively minor investor, saw its capital importation into Nigeria surge from $0.25 million in H1 2023 to $35.64 million in H1 2024.
This dramatic increase is largely attributed to China’s global Belt and Road Initiative, which aims to bolster infrastructure and trade networks across Africa, with Nigeria identified as a key partner.
Among the newly inducted BRICS members, the United Arab Emirates also contributed to the growth in capital inflows, rising from $209.41 million in the first half of 2023 to $245.19 million in 2024.
This uptick reflects the UAE’s commitment to strengthening economic ties with Nigeria within the expanded BRICS framework.
While overall investments from BRICS member countries have increased, five members—Brazil, Russia, Iran, Egypt, and Ethiopia—did not record any foreign capital inflows into Nigeria in both H1 2023 and H1 2024.
Despite their membership in the BRICS coalition, these countries have not made capital investments during the reviewed period.
The absence of inflows from these nations may be due to various factors, including differing economic priorities, regional focuses, or geopolitical considerations that influence their investment strategies.
November last year, Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, announced the country’s intention to become a member of the BRICS economic bloc and the G20 group within the next two years.
He emphasized that Nigeria meets the qualifications for joining these organizations, citing its significant economy and large population as key criteria for membership.
