Nigeria is set to join BRICS in May 2024.

[Fiatless]

Question - what is the point of BRICS, as an economic union, to join countries with troubled economies?

No offense, but if you look at the composition of the BRICS now, most of them are countries with systemic problems in their economies. And these are not only rogue countries (Russia, Iran), but also China, Brazil, South Africa. And the "weight" of these economies within the BRICS union is more than 50%. How can they fix their "problems" if their partners are the same "economic losers"? I understand when the EU was created, where Germany, France, Italy, and other countries had stable, self-sufficient, strong economies. And in such a union - 75% of the joint economy of the union - stable, and 25% - yes weaker, but they are well supported by the stronger. In BRICS, the picture is actually diametrically opposite....

Weak countries can unite and to form a strong union that can benefit them positively. Africa don't need to be partner with the nations that you mentioned to come out of it's economic woes. After all these nations have been Nigerian's trading partners for centuries. Russia, India, Brasil, South Africa might not be as rich as Western nations but Nigeria has lot to benefit from them in the construction, educational, health and other sectors. Africa don't need nations that throw money on them form of loan and grants, what we need is transfer of technology which could help us to become a productive nation.

Recently China and Lebanon businessmen are leading the recycling industry of Nigeria and this have been to helpful in the reduction of waste generation in Nigeria. It has created employment and transfer of technology because may indigenous recycling industries have been springing up. A small Investment like this benefit the community and not external loans that will be stolen by politicians.

[tyz]

BRICS organisation X account made a tweet on Friday which reads 'Nigeria will apply to join BRICS in 2024'. Nigeria has been going through a lot of economic challenges which have caused double-digit inflation and the depreciation of the country's currency the Naira. One of the problems of the country is its over-reliance on the dollar for imports. The dollarisation of the Nigerian economy has put pressure on the Naira causing it to lose much value.

Joining BRICS might not be the only solution to the economic recovery of the country but it will contribute to its economic recovery. This is because if Nigeria eventually becomes a member of BRICS, the West African country would be trading its major exporting product which is oil in Naira and also paying for exports with its local currency, thereby reducing reliance on the dollar.

Why do you think that the dollarization of Nigerian economy is the main problem? There are many economies around the world, that are "dollarized", but they are doing pretty well. Joining BRICS isn't some kind of economical and financial panacea. What's stopping Nigeria to sell oil for naira without joining BRCIS? Maybe China and India will accept buying oil for naira, but I doubt that the western countries would agree to naira payments for the Nigerian export. The main way to fight inflation in Nigeria is imposing a more restrictive monetary policy by the Nigerian central bank and the Nigerian government finally trying to put government spending under control.

The dollarization of the Nigerian economy is not the main problem. In fact, it is a symptom of deeper issues such as a lack of economic diversification, corruption, and poor governance. The over-reliance on a single currency can lead to currency fluctuations and limit the country's ability to respond to economic shocks. Instead of dollarization, Nigeria should focus on developing its own economic strengths and increasing its self-sufficiency. This can be achieved through investments in infrastructure, education, and human capital, as well as promoting local industries and entrepreneurship.

[DrBeer]

Question - what is the point of BRICS, as an economic union, to join countries with troubled economies?

No offense, but if you look at the composition of the BRICS now, most of them are countries with systemic problems in their economies. And these are not only rogue countries (Russia, Iran), but also China, Brazil, South Africa. And the "weight" of these economies within the BRICS union is more than 50%. How can they fix their "problems" if their partners are the same "economic losers"? I understand when the EU was created, where Germany, France, Italy, and other countries had stable, self-sufficient, strong economies. And in such a union - 75% of the joint economy of the union - stable, and 25% - yes weaker, but they are well supported by the stronger. In BRICS, the picture is actually diametrically opposite....

Weak countries can unite and to form a strong union that can benefit them positively. Africa don't need to be partner with the nations that you mentioned to come out of it's economic woes. After all these nations have been Nigerian's trading partners for centuries. Russia, India, Brasil, South Africa might not be as rich as Western nations but Nigeria has lot to benefit from them in the construction, educational, health and other sectors. Africa don't need nations that throw money on them form of loan and grants, what we need is transfer of technology which could help us to become a productive nation.

Recently China and Lebanon businessmen are leading the recycling industry of Nigeria and this have been to helpful in the reduction of waste generation in Nigeria. It has created employment and transfer of technology because may indigenous recycling industries have been springing up. A small Investment like this benefit the community and not external loans that will be stolen by politicians.

In theory, everything sounds nice. But the reality is somewhat different.
A classic economic union is a kind of symbiosis when interaction between entities brings mutual benefit.
Today's world is somewhat different, especially with such “partners” as China. For example, China needs resources and markets from its “partners”. And in this process, the other party receives little return. Insignificant in relation to the return to China. The same example of China-Russia relations. Russia has become China's raw materials appendage. China receives Russian resources for pennies, and receives other benefits, such as vast territories that Russia transferred to China for virtual monopoly use. In return, Russia receives yuan, for which it can buy consumer goods, and some political support, or rather, China’s passive position on the world stage, in addition to what Russia is doing, for example, in Ukraine. China does the same with other countries that fall into its “paws”. The second concept of China is “friendly investments”, which in fact, as a result, become absolutely unprofitable for China’s partners. Example: Sri Lanka, study how China "helped" this country

[harapan]

BRICS organisation X account made a tweet on Friday which reads 'Nigeria will apply to join BRICS in 2024'. Nigeria has been going through a lot of economic challenges which have caused double-digit inflation and the depreciation of the country's currency the Naira. One of the problems of the country is its over-reliance on the dollar for imports. The dollarisation of the Nigerian economy has put pressure on the Naira causing it to lose much value.

Joining BRICS might not be the only solution to the economic recovery of the country but it will contribute to its economic recovery. This is because if Nigeria eventually becomes a member of BRICS, the West African country would be trading its major exporting product which is oil in Naira and also paying for exports with its local currency, thereby reducing reliance on the dollar.

Its still remains a news,although Nigeria has not said anything about this new implementation,and it seems like the BRICS are the ones trying to or offering Nigeria a chance to join and connect with the BRICS with that promise of trading and exporting their natural resource like oil in naira...🙂

It seems like its a contract to me...I clearly won't appreciate it that this BRICS are placing thier fake manifesto to Nigeria just so they can lure Nigeria into joining them.
Nigeria should focus on fighting and gaining back their economic prowess from wherever they lost it.Although,they haven't responded,and Nigeria should still reconsider this offer;they need not to be told how to handle their utility and economic growth.

[Kakmakr]

The problem with the Nigerian economy has nothing to do with the US Dollar, but more with the government corruption and bad political decisions and appointment of friends and family in key government positions.

Nigeria is a Oil rich country and the citizens are supposed to be benefiting from that, but the spoils from that are flowing into the pockets of a few elites and the corrupt government that put them into those positions.

[franky1]

The problem with the Nigerian economy has nothing to do with the US Dollar, but more with the government corruption and bad political decisions and appointment of friends and family in key government positions.

Nigeria is a Oil rich country and the citizens are supposed to be benefiting from that, but the spoils from that are flowing into the pockets of a few elites and the corrupt government that put them into those positions.

the problem with nigeria HAD alot to do with US dollar interference. nigeria over the last decade are trying to leave US interference
(even OPEC oil was dollar cost controlled, however saudi/brics, other nations/commonwealths are trying to change that)

[Alphakilo]

 

the problem with nigeria HAD alot to do with US dollar interference. nigeria over the last decade are trying to leave US interference
(even OPEC oil was dollar cost controlled, however saudi/brics, other nations/commonwealths are trying to change that)

Yes our government wants to try to leave the US interference but they do not have the balls to do so.

They have so many dirt on them and I think that it is the US bargaining chip. Look at the president for instance, he has a drug file with the FBI some of which were released. A sitting government minister, has been convicted in the US for money laundry related charges. A sitting member of the president's cabinet has also in the past been convicted for credit card fraud. And there are many more. These folks are all presently in the government.

They can't escape the interference from the US because they know the consequences of that.


As for BRICS, no, we are not going to join. I do not believe whatever I read on the news about it. They are chameleons.

- FBI Files Link Nigerian President Bola Tinubu and Associates to Indiana Judicial System Corruption and Drug Trafficking

- US nears deal on Governor Bagudu’s money-laundering case

-EXCLUSIVE: Gbajabiamila Was Found Guilty By Supreme Court Of Georgia In US

[DeathAngel]

Joining BRICS is good Nigeria as it provides access to a fast growing market, there will be increased trade opportunities & potential foreign investment. It also enhances Nigeria's geopolitical influence & allows for collaboration on global development issues. The coms are BRICS could bring economic competition, dependency on member countries & the need to align policies. Weighing it up though, I think it’s mostly positive if Nigeria joins soon.

[Uhwuchukwu53]

This appears to be a very positive step by the Nigerian government. I've heard that they applied to join the BRICS before but were turned down. Following that, Nigeria's current vice president went on air to refute the claim that they had never applied for such. The country's economy is currently very poor, and joining BRICS may alleviate the economic hardship caused primarily by importing and exchanging rates in dollars. I hope this provides a long-term solution and gives people hope for a better life. Although this will not solve the entire problem, it will go a long way to reduce the current economic crisis in the country.

Well for me I see as good move but one thing I see is not all about joining BRICS is the issue but maintaining their ground to transact appropriately because most time out government make good move for a start but don't follow it to the end , allot of good move and plan has been made in various aspects and sector but nothing to write home.

This just one step among thousands to change the narrative of the country economy breakdown. We should never neglect production improvement and saverging importation by increasing local production in all sectors.

[DrBeer]

The problem with the Nigerian economy has nothing to do with the US Dollar, but more with the government corruption and bad political decisions and appointment of friends and family in key government positions.

Nigeria is a Oil rich country and the citizens are supposed to be benefiting from that, but the spoils from that are flowing into the pockets of a few elites and the corrupt government that put them into those positions.

And this is the most inconvenient version, for the corrupt, or corrupted, authorities. Instead of recognizing their inaction or corruption, they habitually find guilty parties "on the side" to save their seats of power. And the population, if it accepts such explanations, is to blame for these problems, because instead of solving real problems, they support populist and false "explanations"

[tyz]

The problem with the Nigerian economy has nothing to do with the US Dollar, but more with the government corruption and bad political decisions and appointment of friends and family in key government positions.

Nigeria is a Oil rich country and the citizens are supposed to be benefiting from that, but the spoils from that are flowing into the pockets of a few elites and the corrupt government that put them into those positions.

This may also be a reason. But nevertheless the USD is a problem for various reasons. A strong USD can lead to an appreciation of the Nigerian currency Naira, making exports more expensive and reducing their competitiveness in international markets. This can lead to reducing export revenues, threatening jobs and economic growth. Additionall Nigerias heavy reliance on oil exports makes it particularly vulnerable to fluctuations in global oil prices, which are often quoted in USD.

[stompix]

This may also be a reason. But nevertheless the USD is a problem for various reasons. A strong USD can lead to an appreciation of the Nigerian currency Naira, making exports more expensive and reducing their competitiveness in international markets.

It's exactly the opposite!

A strong USD as it is right now means a useless naira, making imports very expensive and making exports viable!
But since the country doesn't have the capacity to even cover domestic demand and relies a imports even for food , you have the problems that are currently wrecking havoc in the county!

And this is the main reason while  this whole brics thing won't fix a thing, just as it didn't fix a thing for South Africa either in all these years, for people to accept to trade in naira your currency must stop being toilet paper, nobody will accept it just because you're in an alliance, just as Russia refused Indian rupees, this revived Comecon that more about politics than actual economic facts will have the same fate!

Weak countries can unite and to form a strong union that can benefit them positively. Africa don't need to be partner with the nations that you mentioned to come out of it's economic woes. After all these nations have been Nigerian's trading partners for centuries. Russia, India, Brasil, South Africa might not be as rich as Western nations but Nigeria has lot to benefit from them in the construction, educational, health and other sectors.

Trading partners for centuries? What was Nigeria like in 1800 or 1700?

[Fiatless]

Weak countries can unite and to form a strong union that can benefit them positively. Africa don't need to be partner with the nations that you mentioned to come out of it's economic woes. After all these nations have been Nigerian's trading partners for centuries. Russia, India, Brasil, South Africa might not be as rich as Western nations but Nigeria has lot to benefit from them in the construction, educational, health and other sectors.

Trading partners for centuries? What was Nigeria like in 1800 or 1700?

During this period Nigeria was an important trading partner of European nations because it supplied raw materials that fed the industries in the West. Nigeria was also an important slave market which supplied the manpower to grow cash crops in the New World and the West Indies. According to a study the value of 54 male and female slaves was about £5,100, a sum equal to around £500,000 today. It was estimated that Great Britain had about 3.26 million captives. The rough estimate I did showed that the British-Africa trade partnership yielded about £3 billion. I am sure the worth of trade on cash crops will exceed this sum.         

https://www.cam.ac.uk/research/news/price-of-britains-slave-trade-revealed

[stompix]

During this period Nigeria

didn't exist! There was no such thing as Nigeria!
The Sokoto Caliphate was still running half of the country even at the start of 1900.

As for the rest, you're been independent for almost a century, with a British dominance that lasted not even that much and you still can't let it go. South Korea was in a worse share in 1960 and went through a war, yet look at it now. But keep blaming stuff that happened a century ago, the dollar, the US, the reptilians and you're going to see where that leads, in a circle of blame!

[Fiatless]

During this period Nigeria

didn't exist! There was no such thing as Nigeria!
The Sokoto Caliphate was still running half of the country even at the start of 1900.

As for the rest, you're been independent for almost a century, with a British dominance that lasted not even that much and you still can't let it go. South Korea was in a worse share in 1960 and went through a war, yet look at it now. But keep blaming stuff that happened a century ago, the dollar, the US, the reptilians and you're going to see where that leads, in a circle of blame!

The entity called Nigeria didn't exist, but the areas or kingdoms that made up Nigeria existed. Check out my post and you will see that I have never blamed the West or any other nation for the underdevelopment of Africa. I only brought up these issues to show that we have been partners with some European nations for a long time. I will shout on top of Mount Everest that Africa's problem is not colonialism but bad and fantastically corrupt leadership.   

[stompix]

I will shout on top of Mount Everest that Africa's problem is not colonialism but bad and fantastically corrupt leadership.   

And how will that change by joining an alliance that has 8 or more like 8.5 out of 10 countries run by a totalitarian corrupt to the core regime with a leader for life? 

Anyhow, as I said before
This is what I didn't get from the first line of this topic, how would that help, again, the first line in the opening post:

the West African country would be trading its major exporting product which is oil in Naira

this is not a thing you would want to do at allll!!!!
Your naira is going down because people sell it for other currencies, trading oil for dollars brings in hard foreign currency that supports your naira, if you would be receiving instead Indian rupiah or knows other worthless currency like the rial or the rand you're going to have even a worse time than before!
Why do you think Russia didn't want rupiah and India didn't want to pay in yuan?

So why the enthusiasm when the so-called fix will definitely make everything worse?