- BRICS recently held its annual convention in Kazan, Russia, to continue its challenge of the Western powers
- Nigeria recently became a partner country of BRICS but is yet to become a full member
- TheRadar analyses the implication of Nigeria aligning with BRICS over the Western powers
“The evil you have done is enough” appeared to be the words that Brazil, Russia, India and China muttered in 2006 when they came together to form the organisation BRIC, an acronym formed from their respective names.
The aim of the organisation, which comprised some of the world’s most important developing economies and developed ones, was to challenge the socio-political and economic hegemony of the “evil” doers – the United States and the European Union.
According to them, these Western nations have absolute and domineering control over vital global bodies such as the United Nations (the G7), the World Bank and the International Monetary Fund (IMF). There was also the global market dependence on the US dollar and allegations that the global institutions were no longer prioritising developing economies but was instead exploiting them.
Therefore, a confederation of non-Western economies with similar interests that would challenge the global order and ensure a greater and better voice and representation for emerging nations was needed.
Initially starting with four countries, South Africa was officially onboarded in 2010 – a year after the first official summit was hosted by Russia, expanding the group and its acronym to become BRICS.
How BRICS’ top member-nations compare with the United States and Europe in terms of population, Gross Domestic Product (GDP) and exports. Source: World Bank
This year, 13 countries officially joined BRICS as partner countries, including Nigeria, Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.
This development, made at the BRICS summit in Kazan, Russia, held on October 22-24, 2024, raised a few eyebrows, particularly among Nigerian economists and policy experts, considering that Nigeria was still heavily indebted to the World Bank and the IMF.
However, considering that Nigeria reportedly experienced a surge in foreign capital inflow from BRICS nations, which totalled $1.27 billion in the first half of 2024 alone, the decision to join as a partner then seemed a no-brainer.
In BRICS, there are partner countries and there are full members. However, joining as a partner country was a significant first step in aligning with the anti-Western body. This could later translate to full membership.
What Nigeria could gain from BRICS
Speaking on Nigeria’s decision to join BRICS, the country’s vice president, Kashim Shettima, remarked that Nigeria wanted to be a member of BRICS because the partnership provides opportunities to engage in trade, prosperity and shared progress with no marginalisation based on geography, race and legitimate sovereign affiliations.
In his words, “We want a partnership that guarantees a world governed by acceptable rules and norms.”
Addressing what Nigeria stood to gain, two political scientists who teach and research policy and politics at the Benue State University, Makurdi, Benjamin Shaibume and Aondoakaa Iornumbe, in a journal article submitted that Nigeria could benefit from BRICS member-countries in terms of trade, investment, diplomatic support, economic diversification, cultural and regional alignment, and focus of infrastructure and investment.
“The country's current trade with BRICS countries accounts for approximately 32% of its total trade with China being its largest trading partner. Expanding trade with BRICS countries can help Nigeria diversify its export market, reduce dependence on oil revenues, and promote economic growth. Nigeria's trade with China accounted for 29.3% of its total trade in 2020, followed by India at 9.6%, South Africa at 1.9%, Brazil at 1.1%, and Russia at 0.4%.
“Another advantage would be the diversification of Nigeria's trade markets, which could reduce economic vulnerability and enhance resilience to global economic shocks.
“Furthermore, accessing the extensive consumer markets in BRICS nations could increase demand for Nigerian goods and services. Enhanced trade ties could also pave the way for technology transfers, knowledge exchange, and capacity building, further strengthening various sectors within Nigeria.
“Concerning investment opportunities and infrastructure development, BRICS nations, through institutions such as the New Development Bank, could offer Nigeria alternative avenues for financing. Such financial resources are instrumental in the execution of infrastructural projects, which are critical for Nigeria's economic growth and diversification efforts.
“On the diplomatic front, engaging with the BRICS alliance could provide Nigeria with substantial support concerning regional and global issues. Areas such as counter-terrorism, climate change, and trade negotiations are arenas where diplomatic backing from BRICS countries could significantly bolster Nigeria's position and influence,” the scholars added.
Nigeria’s position with the Western powers
Nigeria’s colonial history with Britain and subsequent adoption of the US presidential system of government meant that it would be heavily tilted towards the Western powers and the global institutions that they control, including the World Bank and IMF.
Starting with World Bank’s International Development Association, Nigeria is the African debtor with the largest profile and the third biggest globally. Per the World Bank’s financial statement. Nigeria’s debt to the IDA rose to $16.5 billion as of June 30, 2024.
In 2023, the International Monetary Fund (IMF) estimated Nigeria’s debt to be N87.3 trillion ($113.4 billion).
When put together, it will take decades before Nigeria will settle these debts, provided that it doesn’t compound the existing figures. And at the current rate of borrowing, these debt portfolios won’t go down anytime soon, as the present administration of President Bola Tinubu has already borrowed $6.45 billion from the World Bank in the space of 17 months.
Nigeria's dilemma with BRICS and the West
The implication of this is that Nigeria can’t be weaned off its reliance on Western institutions. Its huge indebtedness, not to mention its Commonwealth status, means that the aim of BRICS to challenge Western hegemony and wean developing countries off their Western dependence will take some time with Nigeria, if not forever.
The world’s most populous Black nation will have to first rid itself of economic and political entanglements with the West before it can carry a placard in defiance.
Lending his view to Nigeria’s alliance with BRICS, Owerri-based engineer and columnist Precious Allwell opined:
“Nigerian leaders are too knee-deep in chasing after Western leaders to stand up to them and the economy is in shambles. Nigeria’s foreign reserves position is lower than the market capitalisation of three top South African banks.
“Nigeria is so pro-West that President Bola Ahmed Tinubu had to send his Vice President, Kashim Shettima, to the Russian African Leaders Summit while he jetted out to Italy on a familiarisation tour of EU bloc states [in 2023].
“In Nigeria, no president has stood on the rostrum of power without going to kiss and dine with Western leaders first.
“As seen, all the current BRICS member states have a mild to hard anti-Western flavoured foreign policy stance and South Africa is no exception but Nigeria has not supported Russian views since the war in Ukraine began.
“With BRICS trying to shift trade away from the dollar to individual member currencies, this cannot work with Nigeria which spends billions of dollars importing petroleum from the US and the EU,” Allwell added.
World Bank supports Nigeria with $50 million to tackle food nutrition challenges
Meanwhile, TheRadar earlier reported that the World Bank had approved $50 million to support Nigeria’s food nutrition challenges under the Accelerating Nutrition Results in Nigeria (ANRiN) project 2.0 programme.
The World Bank Country Director for Nigeria, Ndiame Diop, said the ANRiN project 2.0 programme was within the Bank's crisis response window, which is focused on helping vulnerable communities overcome nutritional challenges.
Vice President Kashim Shettima, in response, expressed that the project aligned with the Federal Government’s grassroots-driven approach to tackling the nutrition crisis.
