BRICS, a group of five countries, comprising Brazil, Russia, India, China, and South Africa, is pushing to solidify partnership with Nigeria as foreign capital inflows from them reached $1.27 billion as of June 2024. This is a substantial increase from just $438.72 million about same period last year.
Vice President Kashim Shettima, who stated this on Wednesday, said the situation “reflects Nigeria’s deepening of its development partnerships, mutual trust and strategic alliances that support its own domestic growth goals.”
Shettima spoke in Abuja at the 2024 China-Africa Inter-Bank Association (CAIBA) Forum which was held with the theme: “Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialization and Economic Diversification”, and hosted by First Bank.
“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”, the Vice President said.
Shettima said “this explains Nigeria’s active engagement with the BRICS nations, as seen in Government’s participation in the South Africa summit last year, even as a non-member State. The commitment to these relationships was further solidified at the October 2024 BRICS Summit in Russia.”
BRICS is an informal grouping of emerging economies hoping to increase their sway in the global order. In 2023, the group admitted five new members including Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
China, world’s second largest economy remains Nigeria’s number one trading partner, with total trade value reported at N7.38 trillion as at June 2024.
The Vice President said the move underscored the importance of deepening bilateral relationship with China, especially within the realm of financial and banking systems.
BusinessDay recalls that the diplomatic efforts to strengthen ties with China was further highlighted by Tinubu’s official visit to China in September 2024, where he met with President Xi Jinping, and got five key strategic MOUs signed, including initiatives related to the Belt and Road Initiative in Nigeria.
He said that Government strategic thrusts focus on boosting trade, fostering commerce, and diversifying the Nigerian economy through well- structured, mutually beneficial partnerships. He said this goal cannot be achieved in isolation, but rather through collaborative efforts with trusted allies and partners, such as China, who share the nation’s aspirations for a prosperous future.
“As a nation, Nigeria remains committed to its alliances with those who have our best interests at heart and are willing to support our growth and development in a transparent and systematic manner,” Shettima emphasised.
He said it was impressive that Nigeria’s financial institutions were keying into these interventions for development, and commended First Bank for leading the charge in fostering stronger banking and financial collaborations between African banks and the China Development Bank.
CAIBA was created to strengthen collaboration between the China Development Bank and 15 African banks, and this year’s edition is the first to be hosted in African since establishment in 2018.
Olusegun Alebiosu, CEO of First Bank Group said CAIBA, emerged in recognition of the growing trade, investments and developmental ties between China and the African Continent.
He said such partnerships necessitated the pursuit of a stronger correspondent banking and financial systems ties between Africa and China, which was in the interest of both parties.
He noted that as a host of this year’s event, FirstBank is fully committed to the achievement of CAIBA’s objective within the shortest possible timeframe.
He announced that already, the bank had dedicated Chinese desks (manned with both Chinese nationals and Mandarin-speaking personnel), which had helped improve understanding of Chinese culture, business philosophy and the needs of Chinese firms across all its operating countries.
He added that FirstBank is also poised to expand its business presence beyond Beijing to other important commercial centers in China, including Guangdong and Shanghai.
In a remark, Wang Weidong, Vice President, China Development Bank outlined how financial cooperation plays a principal role in promoting modernization for China and Africa.
According to him, CAIBA has been promoting China-Africa trade, industrialization, and economic diversification. It has also been a positive approach to building cooperation, deepening investment and financial cooperation with Africa, and opening new prospects for China-Africa economic and trade cooperation”.
He assured that the Association would support African countries to industrialise in a green and responsible way, develop and renew our land, and achieve inclusive, predictable, and sustainable growth and transition to prosperous financial innovation.
“CAIBA will use various ways, including significant loans, on-demand equity investments, and tripartite cooperation to support Africa’s industrialization. We encourage more use of cryptocurrencies in trade between African countries and China”, he added.
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