1 week ago
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By Merit Ibe
Nigeria’s engagement with BRICS presents a game-changing opportunity to attract massive foreign direct investments (FDIs) and reshape its economic landscape.
BRICS stands for Brazil, Russia, Indonesia, China and South Africa.
Experts note that as the bloc continues to expand its global influence, Nigeria can leverage the strategic partnership to unlock new trade opportunities, enhance industrial growth and strengthen investor confidence.
They infer that with the right policies and economic alignment, the country stands hopeful to harness BRICS’ investment potential, driving sustainable development and long-term prosperity.
The Ministry of Foreign Affairs has emphasised BRICS as a formidable coalition of leading emerging economies and with Nigeria as its ninth partner country, there are unique opportunities to strengthen trade ties, attract foreign investments and enhance socio-economic collaboration with member states.
As Nigeria implements tax reforms to address fiscal constraints alongside other strategic policies, its partnership with BRICS presents a valuable opportunity to attract investments and accelerate development goals. Given that nations with strong diplomatic ties are more inclined to trade and invest in one another, experts suggest that Nigeria—widely regarded as Africa’s big brother—can leverage this alliance to draw foreign direct investment (FDI) into critical sectors such as infrastructure, manufacturing, agriculture, and technology, driving long-term economic growth and sustainability.
The key takeaway is that Nigeria must prioritise economic growth and structural transformation at home. Without a strong and resilient economy, the country’s prospects of attaining full BRICS membership, and achieving its broader economic goals, remain uncertain.
Meanwhile, the global political landscape is shifting, and the United States is no longer the unchallenged economic powerhouse it once was. The policies of former President Donald Trump, among other geopolitical factors, have sent ripples through world economies, prompting nations to reassess their strategies and alliances.
Against this backdrop, David Etim, President of the Calabar Chamber of Commerce and Industry (CALCCIMA), believes Nigeria’s move toward BRICS is a step in the right direction. “Every nation must realign in response to global changes. Nigeria joining BRICS holds significant promise,” he said.
To him, BRICS is still evolving with enormous potential.
“The trade flows of the world, which is quite a significant proportion is within the BRICS economies, with China and India leading the way.”
Reeling out some of the gains, Etims said: “There is a lot to be gained. It’s a group of developing economies, though some are more developed than others. I think it’s good for Nigeria’s economic development.
Nigeria stands a chance in foreign trade with the partnership definitely.”
Etim believes Nigeria has a huge potential for foreign trade but viewed that the focus first should be on developing domestic trade.
“ We need to focus on trading within the continent of Africa because that is where we have a huge comparative advantage of effective dominance and also the huge market, a young market that is on the upward trajectory.
“If you look at the Chinese population today China is aging, Europe, America have aged, India and Brazil are young but you see Africa is very young and so the potential for expanded growth is enormous.
“This is our own season of boom, so I think Nigeria should be able to think first of securing its place as Africa’s Big Brother and then leverage that status into the international community, going through the BRICS member states.
“With the right policies in place, I see a lot of money flowing into Nigeria for infrastructural development because the demand is there and the thing about infrastructure is that it is a catalyst for growth.
“So the more efficient and effective infrastructure there is, the faster the economy grows, the more demand for more infrastructure, the more money comes in so it becomes a vicious cycle that is an expanding twirl.”
On the budget proposed by the federal government for infrastructure, he noted that it will definitely not be enough to solve the deficit issue.
“Government can never solve all our problems. Whoever is thinking that the federal government budget will solve Nigeria’s problem is completely mistaken. Government’s job is to catalyse opportunity. The budget is not supposed to solve all our problems but serve as the catalyst that enables the private sector to bring in private sector funding to solve the problems.
“Government’s money will never solve enough, so let’s not even look at government as our solution. Government is not the solution but a trigger.
“Government is to provide the policies, enabling environment, ease of doing business, the soft infrastructure that triggers growth, then the private sector funding comes in.”
A national council member of the Manufacturers Association of Nigeria (MAN), John Aluya, viewed that Nigeria has not been admitted as a member but just a partner. “Maybe Nigeria is there as an observer. I don’t see any advantage or what we are gaining by just being a partner.
On Donald Trump threat to BRICS with 100% tariffs if they replace dollar, he pointed out that the dominance of the U.S. dollar is so strong.
“ I don’t know what it’s going to take to break it.
The dollar has the dominant position.
I think the mistake was when the Organisation of the Petroleum Exporting Countries admitted to using the dollar as a benchmark of trading currency.
That was the singular mistake everybody made and that cannot be altered anymore. We have to stay with it and live with it.”
On Nigeria’s export prospects following the BRICS partnership and the global competitiveness of local products, Aluya decried the state of Nigerian manufacturers, who are incapacitated by infrastructure deficit, saying “they are not strong enough to compete in international trade.
“The biggest challenge we have in manufacturing is that we are not strong enough to compete in international trade because we have infrastructure deficits. By the time we calculate the cost of our production, it becomes so expensive. That is why you find a lot of people go for imported items.
It’s not that Nigerian manufacturers are not doing their bit. They are, but they are constrained by the challenges of high cost of production created by the deficit of infrastructure because you provide your light, your roads, and you provide your water.
That infrastructure deficit makes Nigerian products very uncompetitive in the international market.
On the African Continental Free Trade Area, the MAN member noted that Nigeria might end up becoming a dumping ground for other African countries.
“ Let me give you an example: South Africa, Morocco, Egypt, and Algeria should have sufficient infrastructure to support their production.
“If you allow AfCFTA to go free with all these countries, you produce a dumping ground in Nigeria, period. And considering the Nigerian mentality, we are always after the cheapest products.
If we open the AfCFTA, as we see that the way Nigeria’s economy is structured today, we are likely to be a dumping ground for other African countries, not just European (countries) now.”
He acknowledged Nigeria as a big country “but we don’t have the competitive advantage because of our poor infrastructure. So, these are the challenges we are likely to face in this AfCFTA.
“There are a lot of challenges, and we need to bridge them.”
He pleaded with the government to bridge the infrastructural gap.
“If we can bridge the infrastructural gap, then we stand a better chance of competing well in the AfCFTA market and foreign trade.”
On the budget proposed by the Federal Government to tackle infrastructural deficit, Aluya said the quantum of budget for infrastructure “to me, it’s not good enough. It’s not enough. And you have to take into account the level of corruption that pervades our system.
So, for you to be able to develop certain areas, develop something in the South-South, South-East, North-Central, and in the South-West, you find that the budget cannot even sustain those things you plan to do.”
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