Forex trading became popular in Nigeria in the 1970s when an increase in crude oil and its prices boosted the economy significantly.
Since then, it has evolved and grown tremendously, and today Nigeria is one of the fastest growing forex trading nations in Africa.
While Nigeria boasts the largest economy in all of Africa, more than 200 million residents have been left unemployed amidst the restrictions surrounding the COVID-19 pandemic.
As such, the unemployment rate in Nigeria increased with nearly 23% in these past few months.
- View a list of regulated forex brokers in Nigeria
As these recently unemployed Nigerians sought new opportunities to earn money, many have turned to forex trading, with the forex market being the most liquid market in the world as more than $5 trillion is traded daily.
One of the forex market’s most attractive aspects is that it; provides significant opportunities for novice and professional traders alike; gives traders control over their own finances; is available round the clock during the week and is easily accessible.
Most brokers provide educational tools complemented by 24 hour support to assist traders in making trading decisions that may result in maximised funds with mitigated potential risks.
As such, Nigeria provides profitable trading conditions for anyone with a stable internet connection and a smart device or PC, as brokers who have expanded into the country provide reliable support, security and advanced analytical capabilities.
Prices depend on the current supply and demand of traders. As leverage ratios in Nigeria are much higher than in other countries such as Europe, the possibilities of enhancing one’s funds are also significantly increased.
As a result of these favourable trading factors, not only has the number of local traders in Nigeria increased, but the international number of traders choosing to invest in the Nigerian Naira (NGN) has also increased.
Nigeria attracts large international investors from the United States, the United Kingdom, China and several other countries with its diverse economy, including its energy and crude oil sectors, as well as its potential in the agriculture sector.
In fact, one of Nigeria’s biggest benefits is the natural resources that can be obtained at low labour costs.
Although Nigeria is one of the fastest forex trading nations in Africa, it is not regulated by any financial authorities and traders are advised to tread carefully.
There are, however, brokerage firms which are regulated with the Financial Sector Conduct Authority (FSCA), a reputable financial authority in South Africa. Several of these FSCA regulated brokers also operate in Nigeria.
As restrictions from financial authorities across the globe can limit the profit made by traders, several reputable brokers have sought to expand their product portfolios by claiming a presence in African countries such as Nigeria.
As such, traders in Nigeria should do so using an authorised and regulated broker that ensures safe trading practices and security of funds for its clients. It is highly recommended that traders choose such a broker to eliminate the possibility of forex trading scams.