Originally established in 2006 to highlight investment opportunities in emerging markets, the group has shifted its focus toward creating a “multipolar” world order to counter Western dominance. Now expanded to 10 full members and 9 “partner” countries, including Nigeria, BRICS faces significant challenges in achieving its stated goals, such as developing a common currency for intra-bloc trade.
The vastly different economic structures of BRICS+ nations complicate this ambition. For instance, China and India accounted for 38% of global manufacturing output in 2022, positioning them as the bloc’s economic powerhouses. In contrast, Nigeria’s manufacturing sector contributed only about 9% to its GDP in 2023, according to the World Bank. Moreover, Nigeria’s exports remain dominated by crude oil, which made up 90% of export earnings in 2022, leaving the country with limited trade diversification.
These structural disparities make intra-BRICS trade integration particularly challenging. While nations like China and India benefit from advanced supply chains, Nigeria’s trade balance with BRICS members is largely skewed. In 2022, Nigeria’s imports from BRICS countries, dominated by China, exceeded $20 billion, while exports were only $2.8 billion—highlighting a trade deficit that undermines potential benefits for Nigeria.
The proposed BRICS currency seems the only tangible economic benefit on offer. But for Nigeria to benefit from the currency SWAP this would entail, the stronger manufacturing economies would have to subsidise Nigerian imports, a very unlikely outcome. This skepticism may explain Nigeria’s decision to remain a “partner” rather than a full member. Ethiopia fully joined BRICS in 2024, despite its dependence on agriculture, while Saudi Arabia remains undecided, and others like Argentina and Vietnam have rejected membership in favour of the dollar-based trading system. Notably, global trade remains 88% dollar-dominated as of 2023, according to the Bank for International Settlements.
Furthermore, the broader implications of alignment with BRICS raise questions about governance and political standards. Unlike the European Union, where accession requires institutional reforms to meet high governance standards, aligning with BRICS might suggest convergence with governance models of countries like Russia, China, or Saudi Arabia. Nigeria ranked 150 out of 180 countries in Transparency International’s Corruption Perceptions Index (CPI) for 2023, raising concerns about how alignment with BRICS could influence governance reform efforts.
For Nigeria, this prompts a critical consideration: does the country aspire to adopt the governance and political standards of these nations, or should it chart a path toward more transparent and democratic institutions? As Nigeria navigates its partnerships, questions of strategic alignment and governance will remain critical, particularly in an era where economic and political alliances shape global influence.
Countries like Nigeria require comprehensive economic and governance reforms to enhance their global competitiveness. Rather than joining a bloc focused on promoting a “multipolar world,” where issues like corruption, poor economic policies, and human rights abuses are overlooked as barriers to export competitiveness, Nigeria should prioritize building a transparent, efficient, and equitable system that attracts sustainable investment and fosters economic growth.
