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Monday, 30 January 2023
Why Nigeria Is the World’s Fastest Growing Forex Industry

Why Nigeria Is the World’s Fastest Growing Forex Industry

2022-10-31

 

The Nigerian Forex industry has experienced phenomenal growth in the past two years. From a country with a population of 170 million and a Forex market of $14 billion, the country has grown its Forex market to $12 billion in less than two years.

Nigeria’s Forex Industry is the World’s Fastest Growing

According to a report by the World Bank titled “Growth in the Nigerian Forex Market: Analysis of Industry Dynamics,” Nigeria has become the World’s Fastest Growing Forex industry in the past two years. This is because the country has an extremely high growth rate of around 50 percent. It is expected that the Nigerian Forex market will reach $25 billion in the next three years.

This phenomenal growth in the Nigerian Forex industry has attracted a lot of traders from around the world. In this article, we will be exploring the Nigerian Forex market and its growth factors.

What is the Nigerian Forex Market?

The Nigerian Forex market is the largest Forex market in Africa. It is also the seventh-largest Forex market in the world with a total turnover of $12 billion in the first half of 2018. The Nigerian Forex market was once known as a “safer investment” than government securities. Traditionally, the Nigerian government has held a majority stake in the country’s banks and other financial institutions. As a result, the industry was limited to investors who were willing to trust the Nigerian government to hold their money. This limited the industry to only a certain segment of the population.

The Nigerian Forex Market Size (Billion $)

The total value of the Nigerian Forex market was $14 billion in 2014. This rose to $19 billion in 2017 and is expected to reach $25 billion by the end of 2019. Nigeria is the biggest reason for this growth. The country’s rapidly growing economy has led to the growing demand for international assets. The rising salaries and increased availability of credit have led to an increase in the demand for Forex.

 
 

Nigerian Forex Companies

There are five major Nigerian financial firms that deal in the trading of foreign exchange. These companies include Agility, First Bank, Intercontinental Exchange, Maverick, and Stanbic. These companies provide foreign exchange services to individuals and corporations in Nigeria as well as across several other African countries.

Nigerian Forex Brokers

Nigerian Brokers allow individuals and corporations to buy and sell foreign currency for Naira. Most of them are local firms but some have international licenses. They can be very useful to expatriates who want to buy or sell foreign currency but don’t want to leave Nigeria.

Nigerian Forex Trading Platforms

African traders can choose from a wide variety of trading platforms when they want to buy or sell foreign currencies. Most of these platforms are mobile apps that allow users to store, manage and execute their trades remotely. They are also useful for traders who want to buy or sell large amounts of money.

Nigerian Forex Exchanges

There are four major foreign exchange trading exchanges operating in Nigeria. These are the Central Bank of Nigeria, CBN; the National Automated Trading Platform, AUT; the Forex Trading and Intermediary Company, FTIC; and the London Inter-Foreign Exchange, Ltd.

Key Takeaway

The Nigerian Forex industry has experienced phenomenal growth in the past two years. From a country with a population of 170 million and a Forex market of $14 billion, the country has grown its Forex market to $12 billion in less than two years. This is because the country has an extremely high growth rate of around 50 percent. It is expected that the Nigerian Forex market will reach $25 billion in the next three years.

This phenomenal growth in the Nigerian Forex industry has attracted a lot of traders from around the world. In this article, we will be exploring the Nigerian Forex market and its growth factors.

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