BRICS partnerships drive $1.27 billion capital Inflow to Nigeria

Vice President Kashim Shettima has lauded the deepening economic ties between Nigeria and BRICS nations, highlighting a significant $1.27 billion inflow of foreign capital from the bloc as of June.

The BRICS bloc— originally comprising Brazil, Russia, India, China, and South Africa—is a coalition of major emerging economies focused on fostering economic cooperation, advocating for global governance reforms, and financing development through initiatives like the New Development Bank.

This marks a substantial rise from $438.72 million during the same period in 2023, reflecting Nigeria’s strategic engagement with BRICS economies to drive development.

Speaking at the 2024 China-Africa Inter-Bank Association Forum on Wednesday, Mr Shettima, represented by the Special Adviser to the President on General Duties, Aliyu Modibbo, emphasised the pivotal role of international alliances in achieving Nigeria’s growth ambitions.

The forum, hosted for the first time on African soil, provided a platform for fostering financial collaboration between the China Development Bank and 15 African banks.

“We are pleased to witness the growing influx of foreign capital from BRICS countries, which amounted to $1.27 billion as of June 2024, a substantial increase from just $438.72 million during the same period in 2023. This reflects the deepening of our development partnerships and the mutual trust that continues to grow between us.

“With a total trade value of NGN 7.38 trillion as of June 2024,” he said.

He commended the role of financial institutions such as First Bank of Nigeria Limited in driving banking and financial synergies across Africa and with China.

The Vice President also underscored China’s position as Nigeria’s leading trading partner, with the total trade of NGN 7.38 trillion recorded as of mid-2024.

He highlighted President Bola Tinubu’s commitment to enhancing Nigeria-China relations, as evidenced by the President’s visit to China in September, which culminated in the signing of five memoranda of understanding.

These agreements include initiatives under the Belt and Road Initiative, aimed at fostering infrastructure and trade development in Nigeria.

“China remains Nigeria’s number one trading partner. This underscores the importance of deepening our bilateral relationship with China, especially within the realm of financial and banking systems. President Bola Ahmed Tinubu’s diplomatic efforts to strengthen our ties with China are clear evidence of our commitment to this strategic partnership.

“This was further highlighted by the President’s official visit to China in September 2024, where he met with President Xi Jinping. During this meeting, five key Memoranda of Understanding (MOUs) were signed, marking a significant step in our collaboration, including initiatives related to the Belt and Road Initiative in Nigeria,” he said.

Mr Shettima reiterated that the Tinubu administration’s economic agenda focuses on trade expansion, industrialisation, and economic diversification.

Also at the event was the Vice President of China Development Bank, Wang Weidong, who emphasised the bank’s significant contributions to Africa, noting that it has facilitated three major investments spanning 33 countries, resulting in the creation of 270,000 jobs.

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He also highlighted the success of a Swiss-led economic zone, which has attracted over 140 companies with combined sales of $3.7 billion, generating over 200 million in income streams and nearly 3,000 direct jobs.

First Bank Group CEO Olusegun Alebiosu also noted the significant role of Chinese companies across African economies, driving growth and infrastructural development, and emphasized the need for stronger financial ties to support mutual socio-economic transformation.

Mr Alebiosu outlined FirstBank’s commitment to deepening China-Africa cooperation, emphasizing the bank’s strategic moves, such as the establishment of Chinese Desks to better serve the growing Chinese business presence in Africa.

He also revealed plans to expand FirstBank’s presence in China, focusing on major commercial hubs like Guangdong and Shanghai. This effort aims to enhance understanding of Chinese business culture and improve services for Chinese companies operating across Africa.