Nigeria has officially been inducted as a BRICS partner country alongside 12 other nations, during the 16th annual BRICS Summit currently taking place in Kazan, Russia. The announcement was made at the summit, which started on October 22 and will run through October 24, 2024.
BRICS, an intergovernmental economic bloc, was founded in 2009 by Brazil, Russia, India, and China and later expanded to include South Africa in 2010, thus forming the BRICS acronym. The bloc aims to establish a powerful alternative to the Western-led economic faction, primarily dominated by the United States.
Nigeria’s Role in BRICS
While Nigeria has not been granted full membership status, it joins BRICS as a partner country, a move seen as strategically important for its economic future. Other newly inducted BRICS partners include Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.
The BRICS economic bloc now has four additional full members apart from the founding nations: Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE), who were granted full membership in January 2024.
Why Nigeria’s BRICS Partnership Matters
Nigeria’s alignment with BRICS comes at a critical juncture, with the country receiving $1.27 billion in capital inflow from BRICS member states in 2024, marking an astonishing 189% increase compared to the $438 million received in 2023. This surge in capital inflow underscores Nigeria’s growing economic ties with BRICS nations, positioning the country as a crucial player in the bloc’s broader economic vision.
While Nigeria’s status as a BRICS partner does not equate to full membership, the country’s strategic importance in the bloc cannot be understated. In November 2023, Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, indicated that Nigeria was considering applying for full BRICS membership at the appropriate time.
BRICS and the New Global Currency
As BRICS continues to expand, talks are underway among member nations about launching a new single currency to rival the US dollar and serve as an alternative reserve currency for global trade. This move could reshape global economic dynamics, particularly in emerging economies like Nigeria.
BRICS leaders have been in discussions regarding this new currency as part of their efforts to promote economic independence from the Western-led financial system. If successful, the introduction of a BRICS-backed currency could have significant implications for global trade, investment, and development, especially in Africa.
Summit Theme and Future Prospects
The theme of the 16th BRICS Summit is “Strengthening Multilateralism for Fair Global Development and Security.” The summit aims to deepen economic integration among emerging nations and reduce reliance on the US-led Western bloc.
Furthermore, With Nigeria now formally involved as a partner in BRICS, the country is expected to strengthen its ties with other emerging economies, paving the way for enhanced trade, investment, and security cooperation. Also, The core mission of BRICS remains fostering greater synergy for global development, and Nigeria’s inclusion could provide new opportunities for growth.
Nigeria’s induction as a BRICS partner country signals a significant step forward in the nation’s foreign policy and economic strategy. As the country continues to forge closer ties with the BRICS bloc, this partnership could lead to increased foreign investments and greater integration into the global economy.
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