Nigeria saw a remarkable 189 surge in foreign capital inflows from BRICS nations in the first half of 2024, as the country intensifies efforts to join the expanded BRICS coalition. Data from the National Bureau of Statistics NBS reveals that capital importation from BRICS countries increased from 438.72 million in H1 2023 to 1.27 billion in H1 2024.
The BRICS group-Brazil, Russia, India, China, and South Africa-expanded in January 2024 by welcoming five new members Saudi Arabia, Iran, Egypt, Ethiopia, and the UAE . While Nigeria was not included in this wave of expansion, it is actively working towards membership within the next two years, aiming to boost trade and investment opportunities.
South Africa and Saudi Arabia led the surge in capital inflows, with South Africa contributing 838.32 million in H1 2024, marking a 267 increase compared to the previous year. Saudi Arabia, a new BRICS member, saw its investment rise from 0.03 million to 147.07 million, signalling deepening financial ties. China also saw a notable increase, driven by its Belt and Road Initiative, with capital flows rising from 0.25 million to 35.64 million, reinforcing Nigerias role as a key African partner.
Despite the overall growth, some BRICS members-Brazil, Russia, Iran, Egypt, and Ethiopia-recorded no foreign capital inflows into Nigeria during both H1 2023 and H1 2024. This lack of investment highlights geopolitical and economic differences that may influence each country's investment strategies. Nigeria remains committed to improving these relationships, aiming to join the BRICS bloc and elevate its global economic standing.
Nigeria continues its strategic push to secure BRICS membership, recognising the potential economic benefits. The nation has already seen positive capital flows from key BRICS members and is positioned to leverage further investment if it succeeds in joining the influential bloc. As the government prepares to formally apply, Nigeria's efforts to strengthen trade and infrastructure ties with BRICS countries remain critical for its economic growth.
