At the recent 16th annual summit in Kazan, Russia, the Brics bloc extended invitations to Nigeria and eight other countries to become “partner” nations as part of its expansion strategy aimed at counterbalancing Western influence. Nigeria accepted this offer in January 2025, igniting discussions on the potential benefits of such a partnership—especially in light of concerns raised by former US President Donald Trump about sanctions for using currencies other than the dollar.
Brics, originally established in 2006 with Brazil, Russia, India, and China, has evolved with the inclusion of South Africa in 2010 and four additional nations in 2023. The Brics partnership provides countries with an observer-like status, allowing participation in special summit sessions and the ability to contribute to official documents, but without hosting summits or selecting new partners.
For Nigeria, the primary advantage of this partnership lies in gaining access to the New Development Bank, which offers an alternative to the typical Western-dominated financial institutions like the World Bank. Nigeria has been facing a significant budget deficit, and financing from the New Development Bank could spur investments in vital infrastructure and sectors like agriculture and manufacturing.
Moreover, the New Development Bank lends in local currencies, lessening Nigeria’s reliance on foreign exchange and providing more stability. As a partner, Nigeria could also seek backing from fellow Brics members for important international issues, such as advocating for permanent African representation in the UN Security Council, with support likely from permanent members like China and Russia.
To maximize its Brics partnership, Nigeria must target foreign direct investment in strategic sectors such as technology and infrastructure, leveraging investor interest from nations like China and India. Partnerships could facilitate Nigeria’s entry into burgeoning industries, fostering growth and technological advancement essential for economic diversification away from hydrocarbons.
The addition of new members to Brics is largely symbolic and may not significantly shift the global political economy, as many members remain aligned with Western nations. Countries like Egypt and the UAE still receive substantial military aid from the US, while Iran’s involvement is less influential due to its isolated status. Thus, Brics cannot serve as a formidable alternative to Western powers.
While Brics aims to lessen reliance on the US dollar for trade, the practicality of completely replacing it remains minimal. Countries will still engage in economic practices that necessitate dollar transactions, making a dramatic impact on dollar dominance unlikely despite any increase in Brics membership.
Nigeria’s recent acceptance of Brics partnership opens avenues for financial support through the New Development Bank, focused on aiding infrastructure and economic growth. The partnership allows Nigeria to participate in discussions on crucial global matters and seek foreign investment in key sectors. However, the overall impact of expanding Brics membership on countering Western influence appears minimal, as many members maintain strong ties with Western nations, particularly regarding economic transactions involving the US dollar.
Nigeria’s partnership with Brics offers considerable benefits, particularly in accessing financial resources for infrastructure and development. However, it faces the challenge of balancing its interests with both Brics and Western allies. While the partnership holds potential for economic growth and global advocacy, the overall threat to Western dominance remains limited despite Nigeria’s efforts to diversify and strengthen its economic position on the international stage.
Original Source: theconversation.com
