FIJ
On Friday, the Brazilian government confirmed Nigeria as a partner of BRICS, a political and economic group formed by Brazil, Russia, India, China and South Africa.
According to the Brazilian government, Nigeria will join the group as the ninth partner country after indicating its intention to do so in October.
This partner-country category was established in 2024. Nigeria joins countries like Belarus, Bolivia, Cuba, Kazakhstan, Uganda, Uzbekistan, Thailand and Malaysia in the partner-country category of BRICS.
“In exercising its pro tempore presidency of BRICS, the Brazilian government announces today, January 17, 2025, the formal admission of Nigeria as a partner country of the grouping,” the statement reads in part.
“Nigeria becomes the ninth partner country of BRICS, joining Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan. This partner-country category was created at the 16th BRICS Summit in Kazan in October 2024.
“It plays an active role in strengthening South-South cooperation and in reforming global governance — issues that are top priorities during Brazil’s current presidency.”
WHAT COULD THIS MEAN FOR NIGERIA?
BRICS was formed in 2009 as a group to foster cooperation and diplomacy among emerging economies in the world. The group expanded to welcome South Africa in 2010.
There are currently 10 full members in the group: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, the United Arab Emirates and several others are on their way to joining them.
As a full member of the group aimed at reforming financial global institutions and countering the dominance of Western powers, attempting to de-dollarise the global economy, members can shape the group’s policies, initiatives and resolutions.
As a partner of the group, Nigeria can push to reduce its dependency on the United States dollar and encourage trade in its local currency. This could also help it mitigate against forex pressures, which continue to be a major factor in the country’s economic crisis, as per the group’s objective to establish an alternative currency to replace the dollar.
Also, while Nigeria is not a full member, it may qualify for funding under specific conditions to finance infrastructure and development projects through its New Development Bank (NBD) and Contingent Reserve Arrangement (CRA).
According to a Council on Foreign Relations (CFR) report published in December, one of BRICS’ main objectives is to serve as an alternative to the World Bank and International Monetary Fund (IMF).
“BRICS members hope that alternative lending institutions can invigorate South-South cooperation and reduce dependence on traditional funding sources,” the report explains.
However, Nigeria’s partnership with BRICS does not affect its existing commitments to other groups such as the IMF.
THIS STORY FIRST APPEARED IN FIJ
Connect with us on our socials: