On January 18, Brazil announced the admission of Nigeria as a partner country to the BRICS bloc of developing economies, adding one of Africa’s largest economies to the growing alliance of emerging market countries. With this admission, Nigeria became the ninth partner country and the second African nation to achieve this status after Uganda.
BRICS, an acronym for Brazil, Russia, India, China, and South Africa, is a powerful alliance of emerging economies. The bloc has been steadily gaining prominence globally, offering a platform for economic and political cooperation among developing nations. While not yet a full member, Nigeria’s BRICS partner opens up new opportunities for economic growth that align with the country’s development objectives. Given Nigeria’s ongoing challenges, including currency volatility, infrastructural deficits, food insecurity, energy scarcity and dependence on crude oil, the real work lies in how Nigeria can leverage this partnership to drive long-term economic transformation into a post-oil economy.
One immediate benefit of this partnership is the potential elimination of trade barriers between Nigeria and BRICS countries. Currently, Nigeria relies on imports for many products, from sugar to industrial machinery, with payment of high tariffs. A closer economic relationship with BRICS could lower these costs, making importing critical goods and exporting Nigerian products to member nations easier. Moreover, Nigeria’s over-reliance on the US dollar for international trade has weakened the naira and raised transaction costs. BRICS countries have been exploring alternative trade settlements in local currencies. In 2024, China’s central bank renewed a bilateral currency swap agreement with the Central Bank of Nigeria (CBN) to boost trade between countries. Allowing direct Naira-to-yuan transactions means Nigerian traders can do business in China without relying on the dollar. This reduces demand for the dollar, preventing its appreciation at the expense of the Naira. In turn, a stronger Naira fosters local economic growth.
Nigeria’s economy is dealing with a significant problem: a lack of a strong manufacturing base. The country consumes far more than it produces, causing high imports, currency devaluation, and economic instability. Leveraging the blueprint and models of BRICS countries, particularly China and India, could transform the country from a consuming nation into a producing one. China’s economic rise is a case study in strategic industrialisation. Nigeria should not just import Chinese products; it should attract Chinese industries to set up local production plants and build industrial hubs focused on textiles, electronics, and automotive production if we collaborate strategically. The concept of import substitution industrialization (ISI) should be at the forefront of Nigeria’s economic strategy. Producing goods currently imported locally lessens foreign exchange pressures, creates jobs and builds a more resilient economy. The country could, rather than import sugar, invest in local sugar production.
Nigeria’s industrial sector will struggle to compete globally without innovation and technology transfer. As a BRICS partner, Nigeria must secure joint ventures that bring digital infrastructure. The global economy is transitioning into frontier industries and technologies such as big data, artificial intelligence, gene editing, 3D printing, blockchains, Internet of Things (IoT), etc. China, India and Brazil are already well-advanced in these technologies. Nigeria should partner with these countries to build frontier industries and technology capabilities. Nigerian workers gain the skills needed for long-term industrial growth. India’s success in IT, digital finance and pharmaceuticals can be a vision map for Nigeria to expand its tech industry, manufacture essential medicines locally, and strengthen its digital economy through direct partnerships with Indian firms.
In terms of agriculture, Nigeria has long seen the possibilities within its agricultural sector, but efforts to maximize them have often fallen short. The country has vast arable land, yet it remains one of the world’s largest food importers. In 2023, the government spent about $10 billion on food imports, including fish. Brazil, a global leader in mechanized agriculture, is a key partner Nigeria can turn to. The South American country’s agricultural policies, particularly its public-private farming partnerships, have made it self-sufficient in food production, as such. Nigeria can develop agricultural mechanisation projects with Brazil, absorb the integration of advanced technologies such as precision planting and the use of GPS-guided equipment, and forge a partnership between the Agricultural Research Council of Nigeria (ARCN) and Brazil’s Agricultural Research Corporation (EMBRAPA) on knowledge exchange and development of farming systems tailored to Nigeria’s ecological zones. Doing these can revolutionize Nigeria’s farming sector, reduce food imports, and improve food security.
Transitioning to a post-oil economy will require significant investment in energy infrastructure. The country is facing an electricity deficit affecting over 85 million Nigerians despite having abundant renewable energy just waiting to be properly deployed. The cost of doing business is currently high due to unreliable electricity, forcing many businesses to depend on expensive diesel generators. A stable power supply, built on advanced energy technology and renewable energy, will reduce production costs and attract more foreign investment. Nigeria commits to achieving net-zero carbon emissions by 2060 under its Energy Transition Plan (ETP) If we look to East Asia, China’s leadership in solar and wind energy production creates a beneficial pathway for Nigeria’s renewable energy growth. For example, Nigeria’s estimated 34 billion dollar lithium reserves, used for producing batteries for electric vehicles and solar panels, allow for an expansive collaboration with BRICS members to establish local battery manufacturing plants instead of solely exporting raw lithium. This would create jobs and position Nigeria as a key player in the global renewable energy supply chain.
Brazil’s ethanol industry is another model for developing biofuel alternatives into its economy, shifting reliance on petrol and supporting climate goals while boosting its agricultural sector. The country produces ethanol from sugarcane, using a public-private partnership model that supports farmers and ensures a stable fuel supply. With its abundant agricultural resources, Nigeria produces around 6% of its own ethanol and imports the remaining 94%. Developing meaningful partnerships with Brazil can help the country explore a similar approach by advancing cassava-based ethanol production, as Cassava is one of the most widely cultivated crops in the country.
Moreover, Nigeria needs massive investments in infrastructure, energy, and technology. However, access to funding remains a challenge. BRICS established the New Development Bank (NDB) 2015 to finance sustainable projects in developing countries. Although Nigeria is just a partner, it may qualify for funding under specific conditions to finance infrastructure and development projects through its New Development Bank (NBD). Nigeria could position itself to access these funds by prioritising projects that align with the NDB’s goals, such as renewable energy infrastructure, sustainable agriculture and green transportation systems.
Nigeria’s BRICS partnership should be a strategic opportunity to redefine its economy in a post-oil world. Contrary to the celebratory cheers from some public sections, Nigeria must focus on building the necessary infrastructure, policies, and human capital to make good use of this partner status. If Nigeria fully leverages BRICS’ financial resources, technological and skills transfer and production, it could transition smoothly to a green economy, diversify revenue streams, improve agriculture, and develop local industries. However, success will depend on effective governance, well-thought policies, transparency, and a clear vision for sustainable development.
*Dr. Aliyu Audu is an economist and public affairs expert. He has served as a consultant to the International Monetary Fund (IMF) and the World Bank. He is the Vice President of the Nigeria/Ireland Business Association*
