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By Rasheed Alao
A fast-growing economy of Nigeria can still grow better as a member of Group of 20 nations (G20). If Nigeria cannot make it, the African Union (AU) should on behalf of other African countries join the G20 not as usual, sidelineguest at G20 meetings but as a full member. What justifies the South African membership of the group cannot deprive Nigeria. This piece on the membership call for Nigeria is supports the push by Rauf Aregbesola, the Minister of Interior who at an international event on counter terrorism in New Delhi, India, suggested that Nigeria should join the G20. The group of 20 countries is an economic union of the world’s largest economies of 19 countries from both developed and developing nations including the European Union (EU28). Accounting for about 80 percent of the Gross World Product (GWP), G20 dominates over two-thirds of the world population, and 75 percent of world tradein which Nigeria in no small measure contributes to the interconnected four international windows of global trade, finance, production, and development (TFP&D).
The group of 20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Korea, South Africa, Turkey, United Kingdom, United States, and the European Union (EU). The meetings usually have guest invitees which include, amongst others, Spain, the United Nations, the World Bank, the African Union and Association of Southeast Asian Nations (ASEAN). This piece is suggesting that the AU should migrate from invitee/guest status to a full member; South Africa should step down for the AU. By tradition, their presidencies, Central Bank governors, Finance and Foreign Ministers annually meet at the G20 summit to address issues on global economies, climate change, and global health, among other germane international and intercontinental issues, rotating both presidency and venues of meetings among members. The G20 forum also interacts and meets with the so-called engagement caucus called G20 six outreach groups of Business 20 (B20) which expresses opinions from the international business community, Labour20 (L20) which stands for the interest of workers and civil society (C20), Women 20 (W20) which ensures that the gender considerations are mainstreamed into G20 rapport, and Think Thank (T20) which serves as ‘idea bank’.
The G20 has only South Africa as a member from Africa which is a relegation to the continent. The Americas in the G20 are the United States, Canada, Argentina, Brazil, and Mexico, while the Asian continent has China, India, Indonesia, Japan, South Korea, and Saudi Arabia though Russia and Turkey are transcontinental countries of Eurasia in the powerful clique. For continental balancing and justification, this piece humbly suggests the European Union (EU) relinquish membership of the G20 for Nigeria, making two members from Africa; or better still, South Africa should step down for the AU to pave way for both EU and AU equalised membership.This recommendation is germane to avoid dual membership of some European countries such as France, Germany, Italy, United Kingdom as members of the G20 and at the same time members of the EU in the G20. Another reason why the EU should bow out is that G20 is no longer G20 as EU encapsulates 28 countries from Europe.
Why Nigeria must be admitted into G20? As a member of G20, Nigeria will be annexing the institutional structures of governance in the world such as the G7 (United States, United Kingdom, Canada, Germany, France, Japan, and Italy), BRICS (Brazil, Russia, India, China, and South Africa), MIKTA (Mexico, Indonesia, South Korea, Turkey, and Australia),Organization for Economic Community Development, OECD (38 members) and United Nations Security Council’s five (5) permanent members,P5 (United States, United Kingdom, China, France, and Russia Federation). Once Nigeria is enlisted, it automatically becomes an ally of The Clubs – G7, BRICS, OECD,MIKTA, P5, and others. The clubs enjoy interwoven membership with multitudes of economic union spillover benefits across board from the parent G20. There is no way ‘The Clubs’ will individually or jointly meet and Africa will not be discussed either at the center or sidelines due to human resourcefulness and pack of (un)tapped raw materials in the black continent. Nigeria’s alignment with the world powers will generatean economic boost as a member of G20. Interacting with the ‘Bigs’ will unarguably improve Nigeria’s international trade, finance, production, and development (TFP&D). Nigeria’s G20 inclusivity is deemed relevant. Globalisation and international cooperation can be observed in some major G20 members which are fuelled by increasing socio‐economic inequalities as it grossly affects the developing world. As a member, Nigeria will be more globalized and internationally recognized among the comity of big nations.
In the area of science and technology, financial stability, and inclusive economic growth and issues such as sustainable development, climate change, digitalization, women’s empowerment and migration, Nigeria will in no small measure benefit as a member. Regarding (in)security, Nigeria is faced with local and international terrorism bedevilling the peace of the country. As a part of G20, adequate security measures and technical assistance is guaranteed through collaborative and effectual efforts from the developed world. This will ensure the supply of sophisticated arms, intelligence, and logistics in form of aid to Nigeria to fight terrorism to a standstill.
In Africa’s case, I concur that the black continent is underrepresented in most influential world organisations and informal groups like G7, OECD, G20, United Nations Security Council’s five permanent members (P5), and so on.
On the part of African Union (AU) inclusivity, AU like European Union (EU) stands to gain the following as a member of G20:
(a)With the birth of the African Continental Free Trade Area (AfCFTA), the African Union (AU), as a member of G20 will further send Africa global and open doors of business and investment opportunities to and from G20 nations. Currently, Africa accounts for just 2% of global trade. And only 17% of African exports are intra-continental, compared with 59% for Asia and 68% for Europe records. The potential for a higher percentage of Africa’s global trade cum transformation across Africa and the world is therefore significant on the admittance of AU into G20 fold.
(b) As a member of G20, AU will be in a better position to tackle climate change and plan big to actualize Energy Transition Plan to increase renewable energy use. This implies that an increase in renewable energy use will lead to net-zero carbon or a huge cut in carbon emissions, and so create a clean and green Africa. If admitted, energy ministers and policymakersfrom Africa will be in a better position to come up with environmental sustainability policies at the G20 summit to cool down global warming, converge CO2 and other emissions in Africa where there are weak shock absorbers to tackle climate change and global warming effects. On this note, Africa needs a viable and actionable Energy Transition Plan and will be in a good position at the G20 meetingto seek global support from climate partners. Further, this piece is proposing the establishment of the African Union (AU) Energy Policy Research Institute (EPRI) which will partner with the Energy Policy Research Group (EPRG) of Europe to manage heat de-carbonization in energy-intensive industries, electricity, and transportation in Africa. To develop a clean economy, the World Bank and other international financial institutions in collaboration with the G20 members should switch from funding fossil fuel energy to supporting renewable sources of solar, wind, hydro, biomass, and geothermal energies.
(c) Most African nations are serving hard loans at international financial institutions across the world. With AU in the G20 circle, debatable and possible softer loans cum debt relief/cancellation await African countries at the G20 summit. At G20 meeting, it will be easier for AU to collectively appeal for a soft or low-interest loan or better still canvass for debt cancellation for poor African nations.
Long and short, in either case made for Nigeria and/ or African Union, the benefits are enormous, inestimable, boundless, and immeasurable. I, therefore, implore President Muhammadu Buhari, National Assembly leaders, Governors’ forum,Alhaja Zainab Ahmed and Mr GeoffreyOnyeama,ministers of finance and foreign affairsrespectively to deploy all-round possible links and strong global networkfor Nigeria to join the G20.
- Dr. Alao is a lecturer in the Department of Economics, University of Abuja.
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