Nigeria experienced a substantial decline of 59.84% in foreign capital from BRICS countries during the third quarter of 2023, according to the Capital Importation report by the National Bureau of Statistics (NBS).
A quarterly analysis reveals that capital inflow dropped from $239.18 million in Q2 2023 to $96.04 million in Q3 2023 representing a 60.35% decrease. There is also a yearly decrease of 17.57% from $116.51 million recorded in the same quarter of the previous year.
BRICS, comprising Brazil, Russia, India, China, and South Africa, witnessed a decrease in capital inflow to Nigeria. Nigeria has been eyeing membership in BRICS as part of its foreign policy agenda to amplify its influence on the global stage.
However, BRICS expanded by inviting six other nations, including Saudi Arabia, Iran, Egypt, Argentina, Ethiopia, and the United Arab Emirates, skipping Nigeria. Out of the invited countries, Argentina turned down the invite while the remaining the remaining five became members officially on January 1, 2024 Yet Nigeria remains committed to its push for BRICS membership within the next two years.
Despite the visa ban on Nigeria since October 2022, the United Arab Emirates (UAE) emerged as a leading source of capital import, contributing $48.78 million, approximately 50.79% of the total capital import from BRICS countries.
Out of the 10 countries in the BRICS group, Nigeria received foreign capital from only five, namely China, India, South Africa, Saudi Arabia, and the UAE.
Nigeria got $34.03 million from South Africa, $11.12 million from China, $1.70 million from India and $0.14 million from Saudi Arabia in Q3 2023.
