Forex Trading in Nigeria Is Out of the Dark Ages

Fowope offers a candid assessment of Nigerian FX after the Central Bank of Nigeria came to observe the local industry

Forex Trading in Nigeria is still evolving. It can be likened to European history as it transitioned from the Dark Ages, through to the Renaissance and into the modern era. The Dark Ages eclipsed limited knowledge and information, based on superstitions rather than facts.

Forex trading in Nigeria went through its own difficult “dark ages” phase. Knowledge was limited! Trading was based on chance rather than organization. Many conducted their trading on superstitions, hoping to get lucky. Forex trading was in total shambles and darkness.

Just like Darwin’s theory that postulates the survival of the fittest, Nigeria persisted and was able to transit to a renaissance – an age of discovery! This phase is very important in the developmental stage as now traders are more informed and have the right tools, putting structures in place for the final phase where trading will be more purposeful, coordinated and institutionalised.

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One of these structures was witnessed in the latest Lagos Forex Expo & Conference organised by Savannah Services. This was the second conference, and it serves as a vehicle linking together all the active players in the industry, educating the traders about the opportunity the market present and providing networking opportunities.

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The expo also moved further to better the first edition with the involvement of the media. There were several interviews from different TV stations, notably, NTA (National Carrier) and Silverbird. The expo was featured in one of the most important Silverbird programme segments on the same day at 10pm to benefit more viewers.

The expo, which was held on August 13&14 at the Sheraton Hotel, was the first of its kind in Nigeria as the government agents, CBN (Central Bank of Nigeria) were there as observers. It is a known fact that the government is making frantic efforts to organise the sector and protect investors’ funds, considering the volume that is churned out daily.

I was privy to this information long before now! We are also aware that certain acts must be amended to enable the regulatory exercise to commence, and I can tell you that the CBN is fully aware of this and already had their plan in place.

I am of the opinion that forex trading in Nigeria is nearing the final phase of the evolution – the modern age! This means that the domestic industry will actually have the support of government involvement as overseers, which will further boost market confidence and encourage the participation of institutional players. How soon can this be? To be honest, I can’t say precisely, but we are close.

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