Nigeria is set to join BRICS in May 2024.

[Fortify]

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.

Sounds like they are on the BRINCS. It's such a meaningless acronym these days, these countries are all directly competing with each other and do not have any particularly special relationship - beyond being big enough countries that could be considered "developed" these days. China and India are not exactly best friends, they have been on the brink of war over border regions that neither wants to settle on. South Africa has become increasingly irrelevant and has lost a lot of the lustre it had when this group was bundled together. Russia has also become a bit of an untrustworthy ally in recent years, thanks to their behaviour in creating war in Europe, a big trading partner to many of these.

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[Fiatless]

The Naira has gain significantly recently and Goldman Sachs predicted that the currency will appreciate for the next twelve months.

https://dailypost.ng/2024/03/09/naira-depreciation-continues-against-usd-at-forex-market-days-after-binance-exit/
Where can I see those gains?

Besides, you're looking at a rate hike of 400 points up to 22.75%, the US is at  5.25% and the EU at  4.50%, you know what a 22% rate would do to the investments the country badly needs?
 

Iran is going through a lot of economic challenges which has contributed to the fall of the the Rial. If Western sanctions on Iran is lifted, the Rial will do better.

So, at the end of the line, nothing has helped the country despite being part of BRICS and the western influence is still making the rules.

Naira gains might be little but it is significant to Nigerians. Nigerians were in economic shock when the Naira was almost going down the drain and people couldn't buy anything meaningful with the Naira. So Nigerians are celebrating these small gains.

The influence of BRICS on the economic recovery of some nations will not be automatic. It will be gradual and consistent if these nations cooperate. The world is dollarised so it will take some time for things to change.

[Ndabagi01]

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.

[tyz]

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.

So it will be BRINCS in the future? 

It should be recognized that membership in BRICS presents a opportunity for Nigeria, offering potential to its economic challenges. While the road to economic recovery may be complex, the prospect of joining BRICS represents a good way for Nigeria to diversify its trade relations and mitigate the effects of over-reliance on the US Dollar. By  becoming a member of BRICS, Nigeria could leverage the opportunity to trade its primary export, oil and conduct transactions using its local currency what could shift away from dependency on the USD.

[Asiska02]

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.

This is a very welcome development by the Nigerian government and it’ll pave way for them to diversify their economy more and also help to boost the economic recovery process of the country. Nigeria have been experiencing a lot of economic crisis recently right from when the fuel subsidy was removed, the masses are not happy with the current economic situation in the country and this was all caused by the dependency on dollar for all foreign exchange. By joining BRICS, they now have the opportunity to sell their products in Naira which will bring about more economic stability for the country. This is a good step and in the most right time it is needed for the good of the country.

[Casdinyard]

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.

Massive news if I do say so myself. I'm not so sure about the martial implications of this as if I'm not mistaken Nigeria's not really keen in allying themselves with their oppressors (USA) and allying with countries that directly oppose the US might just mean business. Although it also makes sense that they do this in such a tumultuous economic state for the US, they know that the America wouldn't really be interested in attacking 'enemies of the state' at this stage since it's much more important to ensure that they don't fall face flat into another economic crash, which they are heading towards as we speak.

Nigeria's seeking powerful allies to assist it in political and economic affairs, this might be the big break they are looking for but I guess we'll have to wait for the meantime to see what this partnership will really bring to the country since these countries in the BRICS, while politically and martially powerful, all suffer from their own economic issues which may disallow them from making any bold moves against the US. Plus it's going to be really stupid to declare war this advanced into human development, we're going to be killing each other with atom bombs until not even a lizard could exist in the barren lands of the planet. I'm getting off a tangent here but I'm really excited for Nigeria now.

[Yogee]

[...]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.

I know China and Russia are slowly spreading their "wings" in African countries but this still came as a surprise to me since I thought Nigeria is heavily influenced by US and West allies from a political and economic standpoint. I think the transition is not going to be a smooth one so best of luck to the current politicians supporting the BRICS membership.

[avikz]

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.

Nigeria surely needs a Plan B as their Plan A failed miserably. They are also facing a huge amount of internal conflicts due to the resurgence of terrorism group like Boko Haram amongst others. The majority of African country is failing due to the corruption and internal conflicts. Let's hope that joining BRICS will help them to export their products in local currencies thereby reducing the dependency on US Dollar.

Nigeria is sitting on a pile of natural resources. It's only due to the internal conflicts and corruption, they are not able to make the right move to monetize them. Joining BRICS might help them slightly to recover. 

[Charles-Tim]

nigeria didnt get much funding support under the US IMF regime to scale up electric production. however brics has many grant/loan proposal projects(and expertise) which countries can enter into if joining brics. so i can see why they are swinging in brics direction

The problem we have in Nigeria is bad governance and incompetent leadership. Ghana is was estimated to be 32.83 million in population in 2021 and it is generating electricity that is almost three times of the electricity that Nigeria is generating. Yet Nigerians are more in population. In 2021, Nigeria population estimate was over 200 million people. We were supplying Ghana electricity before. But now Ghana said they can supply us electricity if we accept such offer.

[Dickiy]

I don't really understand the situation in Nigeria, but at first glance it still concerns the issue of inflation and worrying economic conditions. If it is related to joining BRICS, perhaps the government there has given up because dependence on the dollar cannot solve its economic problems. In this case, BRICS has a lot to offer to improve the economic situation there. With Nigeria joining BRICS, will Nigeria's international relations with America improve? Seeing several countries joining in and showing positive results is a strong reason for Nigeria to take the right decision to save the country's economy, at least reducing the dependence that has been shackled Nigerians on the dollar.

[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....

[davis196]

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.

[AVE5]

I've always known Nigeria and its government of pointing out errors regarding its devaluing of its currencies naira including some faceable claims of being responsible for its economy downfalls. Meanwhile, they never hesitate to take drastic actions towards their findings and after it all they rollover at where they would chanel next accuse of being responsible for their developments. Recently they said the Binance exchange and other digital exchanges was responsible for the devalued of their naira and has banned the used of the Binance exchange and other exchanges in the country while it was all lies andbesidesy, they failed to consider how that service enhances a flexible fairness to their citizens who're into crytop currencies trading. This happened even as they repeatedly banning and unbanning crypto access adoptions by their governments institution.
I think this country is frustrated and having an alignment with the BRICS might not be the solution to their economic determinant but straight up to their governing system that's full of selfish interests and misusage of powers.

[franky1]

nigeria didnt get much funding support under the US IMF regime to scale up electric production. however brics has many grant/loan proposal projects(and expertise) which countries can enter into if joining brics. so i can see why they are swinging in brics direction

The problem we have in Nigeria is bad governance and incompetent leadership. Ghana is was estimated to be 32.83 million in population in 2021 and it is generating electricity that is almost three times of the electricity that Nigeria is generating. Yet Nigerians are more in population. In 2021, Nigeria population estimate was over 200 million people. We were supplying Ghana electricity before. But now Ghana said they can supply us electricity if we accept such offer.

africa as a whole has been used and abused by the international community for centuries
everything from international groups stealing agricultural land, displacing natives.. to then mega-farm produce excess food to then throw it at the country as 'aid' to then kill off demand for family run independent farmed produce, causing more conflict, unemployment and homelessness which has for decades caused delays in progress.. and thats without discussing the other resource manipulations of the international groups..

i can see why places like nigeria turned down (western)international support because being handed grants/aid for free kills commerce which kills taxation which kills public utility growth
it happened in haiti too after their disasters. when international aid was handing them free solar and free satellite internet. it killed off its own domestic services of energy and communication..

though many people scream their racist calls about US and non-us superpowers. when infact the west failed africa, i can understand why they would try to seek other support. especially when they have more export trade ties to the east anyway(compared to the west) so better to do more deals with the east

.. they need some support to bootstrap the beginning of rebooting infrastructure growth to then be self sustainable

no one can tell if the nigerian-brics deals will operate without corruption and actually start a new era for nigeria. but compared to the status quo of the last few decades, something needs to change

[Charles-Tim]

africa as a whole has been used and abused by the international community for centuries
everything from international groups stealing agricultural land, displacing natives.. to then mega-farm produce excess food to then throw it at the country as 'aid' to then kill off demand for family run independent farming causing more conflict, unemployment and homelessness which has for decades caused delays in progress.. and thats without discussing the other resource manipulations of the international groups..

i can see why places like nigeria turned down (western)international support because being handed grants/aid for free kills commerce which kills taxation which kills public utility growth
it happened in haiti too after their disasters. when international aid was handing them free solar and free satellite internet. it killed off its own domestic services of energy and communication..

though many people scream their racist calls about US and non-us superpowers. when infact the west failed africa, i can understand why they would try to seek other support. especially when they have more export trade ties to the east anyway(compared to the west) so better to do more deals with the east

.. they need some support to bootstrap the beginning of rebooting infrastructure growth to then be self sustainable

no one can tell if the nigerian-brics deals will operate without corruption and actually start a new era for nigeria. but compared to the status quo of the last few decades, something needs to change

It is true that Africa has been used and abused, but we can have our time now but which our leaders are not concerned about. I do not know what is actually causing this. Everything is not just working. I think if Nigeria leaders are competent enough, we do not need the help of the West or East to build ourselves. That is what we need from the leaders but they know more of politics than economy. Example is in technology which Nigerians are poor at and depend on countries like China and other companies. Importing phones, other devices, cars and other things without producing any. If I tell you that we import common touch lights, light bulbs, grater, most matches et cetera. They are not produced locally. Almost every equipment are made in China. Nigeria need to wakeup. Joining BRICS might help a bit but it has not solved the cause of the issue we have in Nigeria. Also Africa countries needs to think like this. We just want to copy the Whites but not want to do it in our own way. Yet they copied but not getting it right. Everything Africa can need to have economic growth and development is inside Africa but they do not just want to discover anything but sleeping.

[Kingperry22]

Expressing intention to join isnt actually applying. However, there are pros and cons to that should be noted when the country eventually joins firstly, it might bring about economic diversification since the nation is highly consuming it might bring in foreign direct investment in the manufacturing sector also BRICS nation which are originally 5 could have a greater say in terms of international issues concerning Nigeria. The cons will result for the Nigeria to be heavily dependent on the BRICS nations and therefore shifting policies to only favour these countries.

[franky1]

going solo(domestically) can be done, just takes time

step 1a. not rely on western "aid".
step 1b. not rely on blackmarkets.(stealing aid to sell)
step 2. start up ethical/clean business again.
  - 2a. first retail to sell ready made goods and offer employment,
     - 2b. this gets the ethical/ good economy markets(stalls and shops) opening to ignite general domestic economy
step 3. then fund building basic infrastructure of nigerian locals manufacturing.
 
but it takes time and money
but less time/money than doing step 3 followed by step 2

also current process of last few decades of relying on aid and then skipping to 2b. but not doing 3, didnt work
(where corrupt people, pirates, guerilla groups steal aid then sell on blackmarket)
...
so steps of: first official ethical retail needs to outweigh blackmarket to get good money flowing. then that can spark employment and fund domestic production growth of produce which then funds public infrastructure

doing steps above and using brics to push step 3 forward side by side would be best option.. if all goes right in those partnerships of goods and infrastructure trade deals

[letteredhub]

Nigeria joining the BRICS may not bring about all round solution to the economic debacles faced by the country , worst of it is the issue of the constant depreciation of the Naira against the Dollar that has been so suppressive to the currency in the international market, but to a large extend such marriage with the BRICS  will foster a much economic growth to Nigeria's strengthening the Naira since both local and international trades will be dealt with using the naira, unlike the dependency relations or the unequal relations  between naira -dollar.

Questions:
1) Why are you not doing deals in naira with other countries right now?
2) What is stopping you buying things from China or Iran or Afghanistan or India with nairas?
3) If nobody wants your naira now because it's worthless and you can't keep it for two days without losing 10% why would anyone accept it after you joined BRICS?

Additional question
If BRICS would help you prop the country currency against the dollar why has the Iranian Rial lost 90% of its value in 4 years?

More importantly, the dependencies condition's from these capitalist countries of the West and Europe through the IMF and World Bank  that have create certain vestiges on Nigeria economy and Africa at large will gradually wither off, because the moment Nigeria is liberated of these vestiges that has been behind the curtain of this unequal interdependence between (Nigeria) Africa and the West conditioning development in the Southern pole by the development and expansion of theirs. Other African countries will follow suit and greater economical change will be felt in the strength of African countries currency's and in all other socioeconomic aspects of the society. I think of the BRICS as a necessary evil Nigeria must be a part of for the sake of her currency strength.

Yeah, worked wonders for South Africa



But be my guest, keep "liberating" yourself, just don't forget the on all fours pose when begging the west to come back like Zimbabwe did!

BRICS is an ambitious project that tries to challenge the dominance of Western economies and especially of the USA.

I always find it funny how it's always labeled western alliance  
https://en.wikipedia.org/wiki/List_of_countries_by_easternmost_point
Removing microstates you have:

1    Russia   
2    New Zealand   
8    Australia   
12    Japan   
13    Indonesia   
14    China   
16    South Korea
17    North Korea   
19    Philippines   
20    Taiwan   

There are 3 countries in the "new shit order", and 6 aligned with the "west" if you look at the east! Not to mention that Brazil is east of all of Europe!  

You have made your own point clear and hownit suites positively in favour of where you're coming from but the undeniable truth which is not born out of any form of sentiments still remains that the relationship between the West/Europe and those countries of the African continent is widely unequal favourable to the the Northern pole alone.  Like I have said time without number, Africa suffers from  bad leadership that's clothed in greed and this greed has made the leaders to perpetually perpetuate the unequal relations of dependency. Paul Baran in his Political Economy of Growth explains a lot even to a layman's understanding about these developmental issues.

I certainly not against the West or Europe but in the light of things when we continue doing same thing and expecting a different results, it's an act of madness, and that's what makes it necessary for dynamic change in the economical relations of Africa as a whole and not just a unit of Zimbabwe or whatever.

[tyz]

[...]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.

I know China and Russia are slowly spreading their "wings" in African countries but this still came as a surprise to me since I thought Nigeria is heavily influenced by US and West allies from a political and economic standpoint. I think the transition is not going to be a smooth one so best of luck to the current politicians supporting the BRICS membership.

Indeed, China and Russia have significantly increased their invests in Africa in recent years, aiming to strengthen their economic and geopolitical influence on the continent. China has a initiative called "Belt and Road" that led to substantial infrastructure development projects in various African countries, while Russia has focused on energy and natural resource partnerships. These investments have sparked both opportunities and concerns, as african nations seek to balance economic growth with potential dependencies and sovereignty issues.

[franky1]

Questions:
1) Why are you not doing deals in naira with other countries right now?
2) What is stopping you buying things from China or Iran or Afghanistan or India with nairas?
3) If nobody wants your naira now because it's worthless and you can't keep it for two days without losing 10% why would anyone accept it after you joined BRICS?

Additional question
4)If BRICS would help you prop the country currency against the dollar why has the Iranian Rial lost 90% of its value in 4 years?

lets start with (4)

Iranian Rial has lost 90% ... to what?

0.000030rial vs $1dollar  to 0.000024rial vs $1 seems to be the average
math went from 100% to 80% meaning a 20% drop.. not a 80% drop

yep the only RED alert of downside is USD by 20% but not as big as your 90%

but when compared to other "eastern" countries you listed.. they are green where iranians get more other currency for their rial

1    Russia   
2    New Zealand   
8    Australia   
12    Japan   
13    Indonesia   
14    China   
16    South Korea
17    North Korea   
19    Philippines   
20    Taiwan   

east math(ignoring decimal 0's)
iranian rial to chinese yuan 16 to 17 = +6.25%
iranian rial to russian ruble 15 to 21.5 = +43.33%
iranian rial to N.zealand dollar 35 to 38.6 = +10.28%
iranian rial to indonesian rupiah 33 to 36.9 = +11.81%
iranian rial to S.Korean won 27 to 31.117 = +15.24%


notice how UNNATURALLY straight the rial-USD market went vertical and horizontal..
now how NATURAL the 'eastern countries' traded and moved to new highs