In the 1970s forex trading became popular in Nigeria, due to the increase in crude oil preserves. The prices of oil skyrocketed and along with it the economy boomed. Today, the country is considered as Africa’s fastest growing economy, but also as the leading FX trading nation in the continent.
However, Nigeria was not spared by the economic crash caused by the COVID-19 outbreak, resulting in 200 million unemployed locals. Many of these looked for alternative methods for making money, and so they turned to forex trading. Those with an internet connection had seemingly found a way to make money, while also propelling the country’s FX sector.
Currently, the leverage opportunities are much higher than the European or US leverages, and as such local users can easily profit. However, higher leverages hold as much opportunity for profit as they do risk of losing.
These, and other favourable trading conditions, have resulted in an increases of forex traders in Nigeria. Furthermore, the rate of international traders who have chosen to invest in the Nigeria Naira (NGN) has spiked in recent times.
There is a considerable amount of interest from UK, US, and Chinese investors, as well as from other more developed countries. Nigeria seems like gold mine to these with its energy reserves, crude oil, and agricultural sector.
Despite all that was said, Nigeria is not regulated by any official financial agency, and so traders should nevertheless move with caution.