Inside Africa: Nigeria Becomes A Partner of The BRICS

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In an interview at the World Economic Forum in Davos, Nigeria’s Foreign Minister Yusuf Tuggar told CNBC Africa of Nigeria’s long history as a trading nation: “Commerce and trade is something that comes natural to us because Nigeria was created out of that! [From] the trade relations between people around the confluence of the rivers Niger and Benue.”

Indeed, the two rivers, which spring from opposite ends of West Africa, meet at Lokoja right in the heart of Nigeria, and from there lead directly toward the largest river delta on the continent, the Niger Delta, and beyond it the Gulf of Guinea. The waters have linked ancient empires, their currents transported peoples and their wealth, for centuries.

Nigeria’s recent trade endeavor was to become a partner nation of the BRICS. On January 17th, 2025, the Brazilian Foreign Ministry officialized Nigeria as the BRICS’s ninth partner country, joining Uganda, Bolivia, Cuba, Malaysia, Thailand, Uzbekistan, Kazakhstan, and Belarus. The partnership stems from shared interests and aims to strengthen Sout-South cooperation.

With 224 million people, Nigeria is Africa’s most populous nation, and the fourth largest of BRICS. Its addition has expanded the group’s reach across more than half of the world’s population, and over 45% of global GDP.

Nigeria is currently a partner nation, a status created in October 2024. Partners can attend meetings and events organized by BRICS. Partners cannot vote on BRICS decisions, unlike the ten member states, but still adhere to some of the group’s objectives and participate in initiatives. Though former minister of the interior for Nigeria, Professor Bola Akinyemi, called Nigeria’s mere partner status a “slap in the face of Nigerian’s”, many believe the move opens doors for Nigeria.

Brick by BRIC

BRICS (née BRIC) was founded by Brazil, Russia, India, and China in 2009 (South Africa joined a year later under invitation from China). The term was initially coined in 2001 by Jim O’Neill, an economist for Goldman Sachs who in a research paper argued the G7 would be challenged by four then emerging economies, he nicknamed BRIC.

A first summit was held in Russia under invitation from Vladimir Putin. His ambitions were to create an alliance of states that opposed western hegemony in international institutions, such as the IMF, the World Bank, or the UN Security Council.

BRICS leaders meet annually to discuss global economic and geopolitical strategy. The aim is alignment among BRICS members working against a reliance on the US dollar, as well as US and EU foreign policy interests.

They hope to create an alternative financial system for countries around the world. It is a “push for reform in the global financial architecture” says Yusuf Tuggar. BRICS created the New Development Bank (NDB) designed to replace the World Bank, and the Contingent Reserve Arrangement (CRA) designed to replace the IMF. They fund non-USD development projects in emerging markets. Climate finance is seen as a key priority for the BRICS, which pledge that 40% of projects should tackle climate change.

Since 2016, the NDB has financed 96 projects across the world, worth over 32 billion USD. Nigeria is especially hopeful to benefit from such investment. Daniel Bwala, a special advisor to Nigerian president Bola Tinubu, claimed that the BRICS will help Nigeria in its goals to form mutually beneficial trade relationships, aiding in the transition that many African nations seek, from a consumer economy to a growth-oriented economy.

One economist, Emeka Okengwo, even told Voice of America (VOA) that put together, the BRICS “probably bring 10 times the value of whatever Europe and America can give.” In a similar vein, the South African Institute of International Affairs argued that over the past decade, China has shown much investment interest in Nigeria, boosting development across the country in its primary industry: oil.

Black Gold makes up an estimated 95% of Nigeria’s earnings. BRICS nations, members of which also include the UAE and Saudi Arabia, also have a vast hold over the world’s oil reserves.

In June, President Bola Tinubu declared a national state of emergency in the country’s oil sector. S&P Global Commodity Insights, a think tank, estimates Nigeria has averaged 1.5 million barrels per day this year - crude output has the capacity to produce 2.2 million barrels per day, but is hindered by underinvestment and technical issues, as well as theft. It led western companies such as Shell or ExxonMobil to try to sell their assets to local firms this past year.

Yet, the average has since risen to around 1.81 million barrels per day. Security operations and law enforcement, especially in the Niger Delta, along with a new fiscal framework, has helped revamp the oil industry. According to the presidential advisor on energy Olu Verheijen, this is set to unlock 1.3 billion barrels of oil for foreign investors. With Nigeria’s recent adhesion as a BRICS partner, much of this oil is destined to also fall in the hands of BRICS nations.

Yet, many doubt the BRICS’s ability to pose a serious alternative to the current global economic framework. The NDB is still relatively small in comparison to the World Bank, 80% of global trade is still done using the USD, and a BRICS currency which certain members desire would have difficulty in a contest with the dollar. Most member or partner countries are also still threatened by unstable politics and weak economies.

Reaching fundamental agreement has also been a challenge. BRICS align on undermining the influence of the dollar, but sometimes, it seems that’s just about it. The group has failed to unite on a clear stance with regards to Russia’s invasion of Ukraine, many countries remaining neutral, including Russia’s closest ally China. Internal divisions also add to the elephant in the room - notably relations between Saudi Arabia and Iran, or India’s rivalry with China.

The key concern with the BRICS though, is an imbalance in China’s economic superiority over other member nations. Although growth has slumped in recent years, China’s economy is much larger than Russia’s, Brazil’s, and India’s, next in line. China’s accounts for roughly two thirds of the BRICS’s contribution to global GDP, and global exports are similar. When it comes to the BRICS share of the global economy, everyone’s riding on the back of China’s effort.

Recent expansion across Africa only adds more weight to China’s load. Somewhat alarmingly, China embraces it. African countries joining the BRICS only broadens and strengthens China’s Belt and Road initiative in the continent, which finances development projects and resource extraction, both to Africa and China’s benefit.

Yet for Nigeria, this may be too big picture. Currently, inadequate infrastructure and tariff barriers still burden the country. Nigeria needs strong trade relations with foreign powers to help development and also make the most of its oil wealth. As Yusuf Tuggar says in the same interview, “In terms of networking worth, [Nigeria] is second to none.” Partnering with BRICS is ensuring Nigeria has a helpful friend to turn to, even if his reliability proves a little dodgy.