BRICS: Nigerian Lawmaker Pushes for Local Currency Trade to Strengthen Economic Sovereignty

At the BRICS Trade Forum held recently in Brazil, Nigerian lawmaker and Chairman of the House Committee on Foreign Affairs, Wole Oke, called on member states of the BRICS alliance to intensify trade among themselves using their respective local currencies. His remarks come amid growing momentum within the bloc to reduce reliance on the US dollar in global trade and financial transactions, a sentiment echoed by other BRICS representatives during the high-level meeting.

The BRICS group—comprising Brazil, Russia, India, China, and South Africa—has long expressed interest in challenging the dominance of Western financial institutions and currency systems. With Nigeria attaining BRICS partner-country status earlier this year, Oke’s participation and advocacy mark a significant moment for the West African nation as it attempts to position itself as a relevant player in a changing global economic order.

Speaking at the forum, Oke stated, “Strengthening BRICS trade is no longer optional; it is a necessity. We must trade more with each other, invest in one another, and build a trade ecosystem that puts our people first. The use of local currencies in transactions among BRICS nations will foster financial independence and reduce vulnerabilities associated with external shocks.”

His call highlights the growing shift among developing economies to explore more autonomous financial mechanisms. According to Oke, the continued dependence on foreign currencies—especially the dollar and the euro—has exposed countries like Nigeria to fluctuations in exchange rates and macroeconomic instability. By transacting in local currencies, he argued, countries can minimize capital flight, stabilize inflation, and increase intra-BRICS trade volume.

This idea aligns with recent initiatives within the BRICS framework. During the BRICS Energy Ministers’ Meeting in May 2025, representatives endorsed the need to prioritize the use of national currencies in global energy trade. They also discussed plans for the New Development Bank (NDB)—the financial arm of the bloc—to expand its loan portfolio in local currencies to better support sustainable infrastructure and energy projects in member countries.

Proponents of this move argue that such financial reforms will help member states avoid the pitfalls of high foreign debt and dependency on Western-led financial systems like the International Monetary Fund (IMF) and the World Bank. According to observers, the NDB’s increasing involvement in projects denominated in local currencies is seen as a vital step toward achieving economic sovereignty among BRICS nations.

Nigeria’s participation in these discussions signals its intent to embrace the evolving BRICS ideology. The country was formally recognized as a BRICS partner in January 2025, joining the growing list of emerging economies aligning with the bloc’s multilateral objectives. For Nigeria, this new relationship could translate into increased access to developmental financing, technical collaboration, and expanded trade routes with fellow member states.

However, the proposal to conduct trade in local currencies is not without its challenges. Critics argue that without significant reforms in domestic monetary policies and improvements in currency stability, some BRICS nations may find it difficult to adopt such systems effectively. For instance, Nigeria’s naira has suffered from persistent volatility, devaluation, and declining investor confidence in recent years. Questions remain about how such currencies can be pegged or valued reliably in trade arrangements.

There are also concerns regarding technical and infrastructural readiness. Setting up a reliable payments system across BRICS countries to facilitate smooth transactions in local currencies requires substantial coordination and digital infrastructure. Financial analysts caution that without such mechanisms in place, the risk of disputes and inefficiencies in settlements could undermine the objective.

Despite these hurdles, Wole Oke insists that the vision is both timely and necessary. “The world is changing rapidly,” he said. “Global power is shifting. We must not be caught on the sidelines. If we want to chart a future that benefits our people, we must be bold enough to rethink outdated systems and embrace solutions that offer resilience and mutual benefit.”

Oke also underscored the importance of collaboration in trade policy reforms and regulatory alignment among BRICS members to facilitate smoother economic integration. He proposed the establishment of a BRICS Trade Policy Council to develop unified standards, manage currency exchange frameworks, and settle disputes.

In Nigeria, the lawmaker’s remarks have ignited fresh debate about the implications of moving away from dollar-based trade. While some economists welcome the idea, citing benefits such as trade cost reduction and economic empowerment, others warn of possible inflationary effects if not managed carefully.

Nonetheless, the overall sentiment among BRICS nations appears to be shifting in favor of greater financial autonomy. Russia and China, for instance, have already made significant strides in bilateral trade using their own currencies. India has also signed currency swap agreements with several countries to reduce its dollar dependence.

As Nigeria finds its footing within the BRICS framework, it must address its domestic economic vulnerabilities to fully benefit from this proposed shift. Rebuilding investor confidence, strengthening its central banking systems, and improving export competitiveness are vital if the country hopes to take full advantage of this evolving global landscape.

For now, Wole Oke’s advocacy serves as a statement of intent: that Nigeria is ready to rethink its role in the global economy and align with partners who prioritize mutual benefit, economic independence, and shared prosperity. If implemented effectively, local currency trade within BRICS could mark a transformative chapter not just for Nigeria, but for many developing nations seeking a more balanced and inclusive global economic order.