Economy: Foreign capital from BRICS countries into Nigeria drops by 59.84% in Q3 2023

According to the National Bureau of Statistics’ (NBS) Capital Importation report, Nigeria had a significant decrease in foreign capital from the BRICS nations in the third quarter of 2023—59.84%.

According to a quarterly review, capital inflow decreased by 60.35% from $239.18 million in Q2 2023 to $96.04 million in Q3 2023. Additionally, there is a 17.57% annual decline from the $116.51 million reported in the corresponding quarter of the prior year.

The BRICS countries—Brazil, Russia, India, China, and South Africa—saw a decline in the amount of capital coming into Nigeria. As part of its foreign policy objectives, Nigeria has been considering joining BRICS in order to increase its influence globally.

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.

UAE leads capital import source to Nigeria

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.