Foreign capital from BRICS block to Nigeria hits 189% in H1’2024

Nigeria’s foreign capital inflows from BRICS nations, driven by  South Africa and Saudi Arabia have surged by 189 per cent in the first half of 2024.  

Initially, the BRICS countries we’re Brazil, Russia, India, China and South Africa.

It was however, expanded in January 1, 2024, by officially welcoming five new members: Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).

Argentina was also invited but declined membership, making the total membership 10.

Nigeria had previously sought membership, but it’s yet undecided.

Analysis of data from the National Bureau of Statistics (NBS) shows that capital importation from BRICS countries rose from $438.72 million in the first six months of 2023 to $1.27 billion in the same period of 2024.

The surge in BRICS capital inflows was primarily driven by South Africa and Saudi Arabia, which accounted for the largest increases in the first half of 2024.Inflows from South Africa skyrocketed from $228.09 million in the first half of  2023 to $838.32 million in the first half of  2024, marking a significant 267 per cent rise. South Africa’s dominant position in capital flows suggests strong bilateral relations, especially in financial services, consumer goods, and telecommunications. Saudi Arabia, a newly inducted BRICS member, saw a remarkable jump in capital inflows, rising from a mere $0.03 million to $147.07 million during the same period. Similarly, China, a relatively smaller investor in the previous year, saw its capital importation into Nigeria leap from $0.25 million to $35.64 million over the same period.