Foreign inflows from BRICS countries climbs to $1.27bn

Omeiza Bilal

The Federal Government has said that foreign inflows into the country from BRICS countries stood at $1.27 billion as at June 2024.

Vice President Kassim Shettima, who disclosed this at the 2024 China-Africa Inter-Bank Association (CIABA) forum sponsored by FirstBank, said the foreign capital inflows increase reflects the deepening partnerships and trust that exist between both countries.

CAIBA was created to strengthen collaboration between the China Development Bank and 15 African banks,

He said, “Our commitment to these relationships was further solidified at the October 2024 BRICS Summit in Russia. We are pleased to witness the growing influx of foreign capital from BRICS countries, which amounted to $1.27 billion as of June 2024, a substantial increase from just $438.72 million during the same period in 2023.

“With a total trade value of NGN 7.38 trillion as of June 2024.

Speaking on the theme of the meeting “Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialization and Economic Diversification”, the Vice President said that “China remains Nigeria’s number one trading partner. This underscores the importance of deepening our bilateral relationship with China, especially within the realm of financial and banking systems.”

Shettima stressed that as both countries should come together to build a robust banking institution that would cater to the diverse needs of the African continent.

As we face complex development challenges, this moment presents an invaluable opportunity for us to compare ideas, exchange notes, and work collectively towards solutions that will drive sustainable growth. We cannot thrive in isolation, and it is this shared conviction that has brought us here today.

The strategic thrusts of our administration focus on boosting trade, fostering commerce, and diversifying the Nigerian economy through well- structured, mutually beneficial partnerships. This is not a goal that can be achieved in isolation, but rather through collaborative efforts with trusted allies and partners, such as China, who share our aspirations for a prosperous future.

As a nation. Nigeria remains committed to its alliances with those who have our best interests at heart and are willing to support our growth and development in a transparent and systematic manner. This approach is aligned with the Renewed Hope agenda of the current administration, which seeks to drive inclusive and sustainable development.

I am especially delighted that our financial institutions are at the forefront of this intervention for development. I would like to commend First Bank of Nigeria Limited for leading the charge in fostering stronger banking and financial collaborations between African banks and the China Development Bank. The promise shown by all stakeholders is highly encouraging, and we are determined to ensure that this collaboration continues to thrive.

In his welcome address, Chief Executive Officer, FirstBank Group, Mr. Olusegun Alebiosu, noted that improved partnership between holds the solution to underdevelopment of Africa.

In the last two decades China has invested over $155 billion in infrastructure projects in sub-Saharan Africa.

The CAIBA platform is one that emerged in recognition of the growing trade, investments and developmental ties between China and the African Continent. Today, it is quite common to see several Chinese companies operating across key sectors of the economy in many African countries where they are instrumental in driving socio-economic growth and infrastructural developments.

“Similarly, several businesses on the African continent have primary Chinese trading partners either as buyers of minerals, metals and other raw materials or suppliers of finished goods such as electronics, phones, equipment, etc.

“Therefore, the pursuit of a stronger correspondent banking and financial systems ties between Africa and China is in the interest of both parties. Also, the theme of this year’s event – Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialization and Economic Diversification – underscores the need for stronger partnership between Africa and China as a panacea for driving further improvements in trade and the overall socio-economic transformation of the two regions.”

As the host of this year’s event, FirstBank is fully committed to the achievement of this over-arching CAIBA objective within the shortest possible timeframe. As an institution, through our dedicated Chinese Desks (manned with both Chinese nationals and Mandarin-speaking personnel), we have taken concrete steps to improve our understanding of the Chinese culture, business philosophy and the needs of the numerous Chinese firms operating across all our operating countries.

The FirstBank CEO also assured that the Bank would double-down on its coverage of the Chinese market through expansion of its business presence beyond Beijing to other important commercial centers in China, including Guangdong and Shanghai.

According to Alebiosu, the steps reflect the strategic importance that FirstBank ascribes to China in particular and Chinese businesses in general.

“As we deliberate throughout today’s session, I urge all participants, especially members of CAIBA, to rededicate ourselves to the ideals and goals that the Association seeks to achieve by exploring innovative ways to reduce and eliminate existing barriers to the flow of trade and investments between Africa and China. I am fully convinced that with the right support from other stakeholders – government institutions, multilateral bodies and private sector players-, the China-Africa relations can become a more powerful force for socio-economic and institutional development, than it is today,” he urged CABA member countries.