Eight months in, the shift East is paying off — oil exports surge, currency swaps ease forex pressure, and new players return to Nigeria’s oilfields
By Ese Ufuoma
Eight months after joining the Brazil, Russia, India, China, and South Africa (BRICS) partnership in January 2025, Nigeria is experiencing palpable shifts, particularly in its oil and gas industry. Trade figures for the first quarter reveal part of that story: exports to BRICS nations soared to approximately N5.41 trillion, more than triple the N1.54 trillion sent to the United States over the same period, driven by booming oil demand from India. This increase shows the immediate impact of Nigeria’s realignment toward emerging markets.
Efforts to reduce reliance on the U.S. dollar are gaining traction. Nigeria has renewed a significant bilateral currency swap with China, enabling naira-yuan trade that bypasses the dollar and eases pressure on foreign exchange reserves. Such arrangements may cushion Nigeria’s oil-export earnings and improve fiscal stability.
In the oil and gas industry, BRICS connections have reinvigorated external interest. Brazil’s Petrobras is preparing to re-enter Nigeria, eyeing deep-water acreage that could unlock new offshore fields. Petrobras is also exploring ethanol-blending projects, bringing Brazil’s biofuel expertise into the mix. These developments, combined with bold investments from local players like Seplat and Renaissance Africa Energy, suggest a potential revival of Nigeria’s production capacity.
Yet challenges remain. The country continues to struggle with infrastructure gaps, oil theft, environmental degradation, and flare-related emissions. Nigeria’s ability to leverage financing from the New Development Bank (NDB), a BRICS institution, is promising, but success will require disciplined governance and clear project planning.
Geopolitically, Nigeria’s BRICS alignment strengthens its voice in global economic arenas and supports its ambition for multipolar engagement. However, it may also provoke tension with Western partners, especially as some global players push back against de-dollarisation efforts through tariff threats.
In the infrastructure domain, the strategic benefits of BRICS-style partnerships are seen in broader investment trends. For example, the Nigerian government recently approved a $652 million loan from China’s Exim Bank for a road corridor connecting the Dangote Refinery and Lekki Deep Sea Port to southern states, improving access for oil products. Meanwhile, Nigeria’s deal to refurbish a gas processing plant under a $1.2 billion agreement with Chinese CNCEC signals growing strategic cooperation in energy processing capacity.
Taken together, these developments reveal an industry at a transformative moment. Nigeria’s membership in BRICS has already delivered tangible trade and investment shifts. In oil and gas, strategic reinvestment and renewed international interest, particularly from Brazil. Success, however, depends on Nigeria’s ability to align BRICS-linked opportunities with internal reforms, environmental safeguards, and diplomatic equilibrium.
Overall, BRICS membership offers Nigeria new levers to drive energy sector growth and reshape its economic future. The oil may be flowing again, but the scale of progress hinges on governance, policy coherence, and strategic foresight.
