Emmanuel OchayiThe National Bureau of Statistics (NBS) released a report revealing a 59.84% drop in foreign capital from BRICS nations during Q3 of 2023.
The figures, plummeting from $239.18 million in Q2 to $96.04 million in Q3, depict a decline that Nigeria is grappling to reverse.
“The recent decline in capital inflow from BRICS nations is a concern for Nigeria’s economic prospects,” said NBS spokesperson, Dr. Adeola Akande. “It’s indicative of ongoing challenges and the need for diversified foreign investment sources.”
While Nigeria’s interest in BRICS membership remains steadfast, recent developments unveiled a setback.
BRICS, expanding its roster by inviting six nations including Saudi Arabia, Iran, Egypt, Argentina, Ethiopia, and the UAE, skipped Nigeria. Argentina declined the offer, while the others became official members on January 1, 2024.
Despite a visa ban on Nigeria since 2022, the United Arab Emirates emerged as a surprising capital source, contributing $48.78 million, constituting approximately 50.79% of the total imports from BRICS countries during the period.
Amidst the decline, Nigeria received capital from only five BRICS members – China, India, South Africa, Saudi Arabia, and the UAE – totaling $47.99 million during Q3 2023.
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The report highlights an overarching drop in overall foreign capital inflow to Nigeria, amounting to $654.65 million in Q3 2023. Foreign Direct Investment (FDI) accounted for a mere 0.091% of the total capital imported, underscoring the struggle to attract investment.
President Bola Tinubu’s economic deals, especially with Saudi Arabia, offering assistance with Nigeria’s FX obligations and commitments to refinery rehabilitation, signify efforts to bolster economic ties amidst declining foreign investments.
Despite these challenges, optimism lingers concerning over $15 billion in pledged Foreign Direct Investments across various sectors secured by Tinubu during overseas visits. The nation’s economic trajectory hinges on materializing these commitments and fortifying strategies to augment foreign capital inflows, notably the pursuit of BRICS membership within the next two years.
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