Foreign capital inflows from BRICS surge by 189% – NBS
In the first half of 2024, Nigeria saw a significant increase of 189% in foreign capital inflows from BRICS nations, demonstrating the country's strategic efforts to secure membership in the expanded BRICS coalition. According to the National Bureau of Statistics, capital importation from BRICS countries rose from $438.72 million in the first six months of 2023 to $1.27 billion during the same period this year.
The BRICS group, which originally included 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 declined an invitation to join the expanded BRICS coalition, bringing the total number of member countries to ten. Despite not being included in the latest expansion, Nigeria remains 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 continue to pursue their goal of integration into the coalition.
The surge in BRICS capital inflows to Nigeria was mainly driven by significant contributions from South Africa and Saudi Arabia in the first half of 2024. Inflows from South Africa soared from $228.09 million in H1 2023 to $838.32 million in H1 2024, reflecting a substantial 267% increase. 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.
China, previously a relatively minor investor, witnessed a surge in capital importation into Nigeria from $0.25 million in H1 2023 to $35.64 million in H1 2024, 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.
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. 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.
In 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, emphasizing that Nigeria meets the qualifications for joining these organizations, citing its significant economy and large population as key criteria for membership.
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