Throughout its sixteenth annual summit in Kazan, Russia, Brics – a bunch of rising economies decided to behave as a counterweight to the west and to whittle down the affect of worldwide establishments – invited Nigeria and eight different nations to hitch it as “accomplice” nations. Nigeria formally accepted the invitation in January 2025. That invitation has generated questions on how Nigeria stands to learn, particularly when US president Donald Trump is threatening to sanction members of the group in the event that they change the US greenback as reserve foreign money. It was established in 2006 and initially composed of Brazil, Russia, India, and China. South Africa joined in 2010 and the bloc added 4 new members (Egypt, Ethiopia, Iran and the United Arab Emirates) in 2023. On this interview, improvement economist Stephen Onyeiwu argues that Nigeria stands to achieve from a Brics partnership, however must fastidiously stability its home pursuits with these of its western allies and Brics.
What does it imply to be a Brics ‘accomplice’ nation?
The introduction of Brics partnership is an enlargement mechanism designed to herald extra contributors with out giving them full membership. It’s akin to “observer” standing.
Brics companions can take part in particular classes of summits and international ministers’ conferences, in addition to different high-level occasions. Companions can even contribute to the organisation’s official paperwork and coverage statements.
However companions can not host annual Brics summits or decide the venue. Neither can they choose new members and companions.
How useful is Brics partnership to Nigeria?
The primary profit can be entry to finance supplied by Brics’ New Growth Financial institution.
The New Growth Financial institution was established as a substitute for western-dominated worldwide monetary establishments just like the World Financial institution and Worldwide Financial Fund. These establishments are generally utilized by the main western nations to maintain growing nations in line on world points.
Some growing nations are reluctant to criticise western nations for worry of dropping entry to funding by western-backed worldwide monetary establishments.
Nigeria has been working a finances deficit of about 5% of GDP since 2019, and it wants funding to pay for the deficits. The New Growth Financial institution might be an necessary supply of funding for funding in Nigeria’s infrastructure, manufacturing, agriculture, and so forth.
New Growth Financial institution loans are additionally obtainable in member nations’ native currencies. They don’t should earn international alternate to repay the loans. This fosters alternate fee stability and promotes financial development. The New Growth Financial institution raises funds in member nations’ native currencies, and lends them to member nations.
Nigeria may use its Brics partnership to garner the group’s help in issues that have an effect on Nigeria globally. For example, there have been requests for African nations to be included as everlasting members (with out veto energy) of the UN safety council. South Africa and Nigeria have been touted as potential candidates. Ought to this subject be raised on the UN, Nigeria can rely on the help of its Brics allies, which incorporates two everlasting members (China and Russia) of the safety council.
Mutual understanding and cooperation with different Brics members and companions would possibly spill over into financial, commerce and funding agreements. Pleasant nations usually tend to commerce with one another and spend money on one another’s financial system.
How can Nigeria maximise its standing as a Brics accomplice?
Nigeria ought to use it to draw international direct funding in strategic sectors of the financial system, corresponding to infrastructure, manufacturing, agriculture and know-how.
Some Brics members, like China, India, and the UAE, have buyers which can be searching for funding shops overseas. Nigeria may use the bloc’s annual summits to showcase funding alternatives.
The worldwide financial system is transitioning into “frontier industries and applied sciences”, corresponding to large information, synthetic intelligence, photo voltaic, drones, gene modifying, 3D printing, blockchains, Web of Issues (IoT), 5G, robotics and nanotechnology. China, India and Brazil are already effectively superior in these applied sciences.
Nigeria ought to use its partnership with these nations to construct capabilities in frontier industries and applied sciences. It may get beneficial phrases within the switch of those applied sciences.
Nigeria seeks to diversify its financial system from reliance on the export of hydrocarbons. However Nigerian producers have had a tough time accessing world markets. The nation ought to negotiate commerce offers that present entry to Brics markets, particularly agricultural and agro-processed merchandise, arts and crafts.
However Nigeria has to advertise financial development and structural transformation at house. If the Nigerian financial system falters, it’s unlikely the nation might be invited to turn into a full member of Brics.
Would including new members and companions scale back western dominance?
Brics has to date not been capable of considerably change the dynamics of the worldwide political financial system. Including new members and companions, whereas symbolic, is not going to act as an efficient counterweight to the affect of the G7 and G20 teams of countries.
Many of the nations and companions in Brics are both allies of western nations or impartial on world points. They’re unlikely to help choices or actions which can be grossly inimical to western pursuits.
Egypt and the UAE, as an example, obtain army assist from the US. Ethiopia and Nigeria are prime recipients of international assist in Africa, a lot of it from western-backed monetary establishments.
The one outlier within the combine is Iran, whose membership was promoted by Russia. However Iran has no leverage to affect others within the bloc.
On stability, due to this fact, Brics is not going to be a risk to western nations.
Brics aspires to weaken the dominance of the US greenback for worldwide transactions. Near 90% of worldwide commerce transactions are performed with the US greenback.
Brics nations plan to scale back greenback dominance by encouraging member nations to settle their commerce and monetary transactions utilizing their home currencies. For example, South African companies may buy Chinese language items utilizing the South African rand, whereas the Chinese language may do the identical for South African items utilizing the Chinese language yuan. The extra members you will have in Brics swapping their currencies, the much less necessary the US greenback might be.
It’s unlikely, nevertheless, that a rise within the variety of Brics members and companions will weaken the greenback. Most will proceed to have important financial relationships with the west, together with commerce and international assist.
They will even proceed to conduct enterprise with many non-Brics nations, which even have financial relationships with the west. They may want the US greenback to transact with many different nations.
So rising the variety of Brics members and companions doesn’t pose a risk to greenback dominance.
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Throughout its sixteenth annual summit in Kazan, Russia, Brics – a bunch of rising economies decided to behave as a counterweight to the west and to whittle down the affect of worldwide establishments – invited Nigeria and eight different nations to hitch it as “accomplice” nations. Nigeria formally accepted the invitation in January 2025. That invitation has generated questions on how Nigeria stands to learn, particularly when US president Donald Trump is threatening to sanction members of the group in the event that they change the US greenback as reserve foreign money. It was established in 2006 and initially composed of Brazil, Russia, India, and China. South Africa joined in 2010 and the bloc added 4 new members (Egypt, Ethiopia, Iran and the United Arab Emirates) in 2023. On this interview, improvement economist Stephen Onyeiwu argues that Nigeria stands to achieve from a Brics partnership, however must fastidiously stability its home pursuits with these of its western allies and Brics.
What does it imply to be a Brics ‘accomplice’ nation?
The introduction of Brics partnership is an enlargement mechanism designed to herald extra contributors with out giving them full membership. It’s akin to “observer” standing.
Brics companions can take part in particular classes of summits and international ministers’ conferences, in addition to different high-level occasions. Companions can even contribute to the organisation’s official paperwork and coverage statements.
However companions can not host annual Brics summits or decide the venue. Neither can they choose new members and companions.
How useful is Brics partnership to Nigeria?
The primary profit can be entry to finance supplied by Brics’ New Growth Financial institution.
The New Growth Financial institution was established as a substitute for western-dominated worldwide monetary establishments just like the World Financial institution and Worldwide Financial Fund. These establishments are generally utilized by the main western nations to maintain growing nations in line on world points.
Some growing nations are reluctant to criticise western nations for worry of dropping entry to funding by western-backed worldwide monetary establishments.
Nigeria has been working a finances deficit of about 5% of GDP since 2019, and it wants funding to pay for the deficits. The New Growth Financial institution might be an necessary supply of funding for funding in Nigeria’s infrastructure, manufacturing, agriculture, and so forth.
New Growth Financial institution loans are additionally obtainable in member nations’ native currencies. They don’t should earn international alternate to repay the loans. This fosters alternate fee stability and promotes financial development. The New Growth Financial institution raises funds in member nations’ native currencies, and lends them to member nations.
Nigeria may use its Brics partnership to garner the group’s help in issues that have an effect on Nigeria globally. For example, there have been requests for African nations to be included as everlasting members (with out veto energy) of the UN safety council. South Africa and Nigeria have been touted as potential candidates. Ought to this subject be raised on the UN, Nigeria can rely on the help of its Brics allies, which incorporates two everlasting members (China and Russia) of the safety council.
Mutual understanding and cooperation with different Brics members and companions would possibly spill over into financial, commerce and funding agreements. Pleasant nations usually tend to commerce with one another and spend money on one another’s financial system.
How can Nigeria maximise its standing as a Brics accomplice?
Nigeria ought to use it to draw international direct funding in strategic sectors of the financial system, corresponding to infrastructure, manufacturing, agriculture and know-how.
Some Brics members, like China, India, and the UAE, have buyers which can be searching for funding shops overseas. Nigeria may use the bloc’s annual summits to showcase funding alternatives.
The worldwide financial system is transitioning into “frontier industries and applied sciences”, corresponding to large information, synthetic intelligence, photo voltaic, drones, gene modifying, 3D printing, blockchains, Web of Issues (IoT), 5G, robotics and nanotechnology. China, India and Brazil are already effectively superior in these applied sciences.
Nigeria ought to use its partnership with these nations to construct capabilities in frontier industries and applied sciences. It may get beneficial phrases within the switch of those applied sciences.
Nigeria seeks to diversify its financial system from reliance on the export of hydrocarbons. However Nigerian producers have had a tough time accessing world markets. The nation ought to negotiate commerce offers that present entry to Brics markets, particularly agricultural and agro-processed merchandise, arts and crafts.
However Nigeria has to advertise financial development and structural transformation at house. If the Nigerian financial system falters, it’s unlikely the nation might be invited to turn into a full member of Brics.
Would including new members and companions scale back western dominance?
Brics has to date not been capable of considerably change the dynamics of the worldwide political financial system. Including new members and companions, whereas symbolic, is not going to act as an efficient counterweight to the affect of the G7 and G20 teams of countries.
Many of the nations and companions in Brics are both allies of western nations or impartial on world points. They’re unlikely to help choices or actions which can be grossly inimical to western pursuits.
Egypt and the UAE, as an example, obtain army assist from the US. Ethiopia and Nigeria are prime recipients of international assist in Africa, a lot of it from western-backed monetary establishments.
The one outlier within the combine is Iran, whose membership was promoted by Russia. However Iran has no leverage to affect others within the bloc.
On stability, due to this fact, Brics is not going to be a risk to western nations.
Brics aspires to weaken the dominance of the US greenback for worldwide transactions. Near 90% of worldwide commerce transactions are performed with the US greenback.
Brics nations plan to scale back greenback dominance by encouraging member nations to settle their commerce and monetary transactions utilizing their home currencies. For example, South African companies may buy Chinese language items utilizing the South African rand, whereas the Chinese language may do the identical for South African items utilizing the Chinese language yuan. The extra members you will have in Brics swapping their currencies, the much less necessary the US greenback might be.
It’s unlikely, nevertheless, that a rise within the variety of Brics members and companions will weaken the greenback. Most will proceed to have important financial relationships with the west, together with commerce and international assist.
They will even proceed to conduct enterprise with many non-Brics nations, which even have financial relationships with the west. They may want the US greenback to transact with many different nations.
So rising the variety of Brics members and companions doesn’t pose a risk to greenback dominance.
