Nigeria Secures $1.27 Billion in Capital Inflows from BRICS Nations

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Nigeria’s engagement with BRICS nations has brought significant economic benefits, as highlighted by Vice President Kashim Shettima. Speaking at the 2024 China-Africa Inter-Bank Association (CAIBA) Forum in Abuja, Shettima announced that Nigeria attracted $1.27 billion in foreign capital from BRICS countries by June 2024. This marks a remarkable increase from the $438.72 million recorded during the same period in 2023.

The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, now includes new members such as Iran, Egypt, Ethiopia, and the United Arab Emirates. Despite Nigeria’s non-member status, the country has actively fostered partnerships with BRICS, leveraging the alliance to advance its domestic growth goals.

Represented by Dr. Aliyu Modibbo, Special Adviser to the President on General Duties, Shettima highlighted Nigeria’s growing economic ties with BRICS nations. He noted that these partnerships are underpinned by mutual trust and strategic alliances, which have been cultivated through active participation in BRICS summits.

“Our commitment to these relationships was further solidified at the October 2024 BRICS Summit in Russia. The $1.27 billion foreign capital inflow as of June 2024 is a testament to the deepening of our development partnerships and the growing mutual trust between Nigeria and BRICS nations,” Shettima remarked.

China continues to play a pivotal role in Nigeria’s trade relations, maintaining its position as the country’s largest trading partner. Total trade between Nigeria and China reached ₦7.38 trillion in the first half of 2024.

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Shettima attributed this growth to President Bola Ahmed Tinubu’s diplomatic efforts, including his September 2024 visit to China. During the visit, five key Memoranda of Understanding (MoUs) were signed, focusing on infrastructure development under China’s Belt and Road Initiative.

“These agreements underline our commitment to strengthening bilateral relations with China. The ₦7.38 trillion trade volume as of June 2024 reflects the strategic importance of our partnership with China, particularly in financial and banking systems,” Shettima stated.

The CAIBA Forum provided a platform to further enhance China-Africa trade and investment relations. Olusegun Alebiosu, CEO of FirstBank Group, commended the association for fostering economic collaboration and called for innovative solutions to eliminate barriers to trade between Africa and China.

“As the host of this year’s event, FirstBank is committed to achieving CAIBA’s objectives. Through our dedicated Chinese Desks and expansion efforts, we aim to deepen our understanding of Chinese business practices and strengthen ties with Chinese firms,” Alebiosu said.

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He emphasized the need for collaboration among governments, multilateral bodies, and private sector stakeholders to unlock the full potential of China-Africa relations for industrialization and economic diversification.

The Vice President of China Development Bank, Wang Weidong, outlined the bank’s contributions to China-Africa relations. From infrastructure projects to supporting small and medium-sized enterprises (SMEs), the bank’s initiatives have generated over 270,000 jobs across 33 African countries, showcasing the socio-economic benefits of the partnership.

Nigeria’s growing engagement with BRICS nations reflects a strategic approach to fostering economic growth and development. By leveraging partnerships with countries like China, Nigeria is positioning itself as a key player in the global economic landscape.

The increasing foreign capital inflows, coupled with strategic trade agreements and infrastructure development initiatives, underline Nigeria’s commitment to achieving sustainable growth. As Nigeria continues to strengthen its ties with BRICS and other global partners, the potential for economic transformation is immense.

The 2024 CAIBA Forum serves as a testament to the power of collaboration, innovation, and strategic alliances in driving socio-economic development across Africa and beyond.

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