Feature/OPED
New World Order, BRICS and Nigeria
By Jerome-Mario Chijioke Utomi
It is pedestrian information that the BRICS economic bloc, one of the leading global voices for more representation of the developing world and the Global South in world affairs, ended a historic three-day summit in South Africa where it addressed a large set of socioeconomic issues pertinent to the members of the group in the presence of interested foreign representatives and organizations as well as announced to the watching world that six countries are set to join the group in 2024: Iran, Saudi Arabia, the United Arab Emirates, Argentina, Egypt and Ethiopia.
The summit was themed “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.
To better understand the piece, BRICS is an acronym that started as BRIC in 2001, coined by Jim O’Neill (a Goldman Sachs economist) for Brazil, China, India, and Russia. Later, in 2010, South Africa was added to become BRICS. Goldman Sachs claimed that the four BRIC economies will dominate the global economy by 2050. The main reason for such a claim was that China, India, Brazil, Russia, and South Africa were ranked among the world’s fastest-growing and emerging market economies for years. The main comparative advantage of this group is their low labour costs, favourable demographics, and abundant natural resources during the global commodities boom.
Essentially, while Nigerians lament this deplorable inability of Nigeria to make the list, Vice President Kashim Shettima, contrary to expectation, reportedly stated that the country never applied for BRICS membership.
“So far, we have not applied for the membership of BRICS. And it is majorly informed by the fact that my principal, President Bola Ahmed Tinubu, is a true democrat that believes in consensus building,” “There are so many variables that need to be taken into cognizance. We have to evaluate so many tendencies and issues that require engagements with the economic advisory council, the Federal Executive Council, and even the National Assembly before an informed decision towards joining the BRICS would be taken’’.
Peripherally, the Vice President’s claim appears acceptable. However, the argument may not hold water when faced with embarrassing arguments. Take as an illustration, it was in the news that South African Foreign Minister Naledi Pandor, In early March, said that worldwide interest in the BRICS group was “huge.”
She further told television interviewers that she had 12 letters from interested countries on her desk’ “Saudi Arabia is one,” she said, adding that, “United Arab Emirates, Egypt, Algeria, and Argentina”, as well as Mexico and Nigeria.”
The crucial concern here is how do we reconcile the varying and conflicting claims discussed by Naledi Pandor and Nigeria’s Vice President?
Away from Naledi Pandor’s revelations, Nigerians with critical minds believe that the non-admission of Nigeria into BRICS is largely a sure sign of Nigeria’s battered economy and a manifestation of the current administration’s disrespect for healthy economic policies that could bring the nation’s economy out of the wood.
‘With malice to none but charity to all, this piece believed and still believes that there exists no reason as to why a serious body like BRICS would admit as a member, a nation that its economy under immediate past administration suffered brink of collapse with two consecutive recessions. Also, a reality to worry about is the fact that those negative policies that landed the nation in recession in the past are today embodied by the current administration’s anti-human economic policies characterized by protracted inabilities to stabilize the currency, the economy or grow the nation’s Gross Domestic Product (GDP).
Undoubtedly, looking at the BRICS growth potentials, the sustainability of their rise, and the impact they have already created on the environment of member nations, no one can describe as groundless the deep concern expressed by well-meaning Nigerians over the country’s failure to get enlisted as a member of the body.
Aside from the awareness that right from October 1, 1960, when Nigeria got her independence, it has related with the West with little or nothing to show for the relationship other than huge economic burden, infrastructural deficit and security challenges, there exists the other hands, hopeful signs, and possibility of economic growth and sociopolitical re-engineering if Nigeria joins BRICS.
For instance, reports have it that the cooperation among BRICS-member nations so far serves the common interests of the developing countries as well as the emerging market economies of member states. Also alluring is the awareness that cooperation and dialogue among the BRIC countries have also assisted the world’s harmony, peace and shared prosperity.
That is not the only benefit.
Viewed broadly, according to reports, BRICS countries from 2009 to 2014 agreed on economic and financial issues, including World Bank and IMF reforms. They agreed to undertake measures of mobilizing sufficient resources so that the IMF can strengthen its potential to combat all kinds of crises. They also created the BRICS Interbank Cooperation Mechanism, which provides an Extending Credit Facility in Local Currency, and the BRICS Exchanges Alliance.
In the same vein, the BRICS nation, it was reported, offered a source of foreign expansion for firms and solid returns for institutional investors. They also focused on some regional issues, including the problems related to Libya, Syria, Afghanistan and Iran (their indigenous nuclear program), and coordinated together in resolving Conflicts, IMF reforms, the struggle against illicit drug trafficking, the need, use, and development of technologies in information and communication.
Also interesting is the awareness that, unlike other blocs, BRICS partners’ relations are built on the basis of the UN Charter; they follow the recognized principles as well as international law’s norms. All the member countries agreed to the following principles during their 2011 Summit. Those principles were: Openness, Pragmatism, Neutrality (regarding third parties) and Non-bloc nature’.
While this piece insists that joining the bloc remains an opportunity that Nigeria as a country must not miss, I hold the opinion that the country (Nigeria) will continue to suffer rejections in the hands of international organizations as well as face difficulty at home accelerating the economic life cycle of its people until leaders contemplate industrialization, or productive collaboration with private organizations that have surplus capital to create employment.
Therefore, as the debate rages, one point that Nigeria and Africa as a whole must not fail to remember is that from what experts are saying, the current wealth disparity among nations (industrial economies), represented by highly industrialized Europe, North America and Japan on one hand and most developing (non-industrial economies) countries, in particular, those in sub-Saharan Africa, on the order is largely a function of difference in the technical capability and capacity to produce and manufacture modern technologies and to use the technologies to produce and manufacture globally competitive industrial goods and to sustain the commanding tasks of science and technology in the economy.
The disparity, it was noted, has since considerably widened and will continue to widen as long as the developing countries depend almost totally on industrial nations for the technologies and industrial inputs they need to sustain their economies. Consequently, the only way to bridge the wealth gap is for the world’s developing countries to build their domestic endogenous capabilities and capacities to produce modern technologies and competitive industrial goods in their own economies, he concluded.
Catalyzing the process will again necessitate recognition by public office holders in Nigeria that public order, personal and national security, economic and social programmes, and prosperity are not the natural order of things but depend on the ceaseless efforts and attention from an honest and effective government that the people elect. They must collectively recognize that it takes a prolonged effort to administer a country well and change the backward habits of the people.
Nigerians, on their part, must admit that it is time to recover their moral and strategic ‘health’ to demand accountability from their leaders for poor decisions, missed judgment, lack of planning, lack of preparation and wilful denial of the obvious truth about serious and imminent threats that are facing the country.
“The destiny of the ship is not in the harbour but in sailing the high sea’’ and so shall our collective responsibility be not to destroy this great nation but join hands to nurture and sustain it. If we are able to manage this situation and other social menace effectively and navigate out of the dangers of disintegration, it will once again announce the arrival of a brand new great nation where peace, love and new order shall reign supreme.
Utomi is the Program Coordinator (Media and Policy) at Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via [email protected]
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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