Forex trading, also known as foreign exchange trading, is a global market where different currencies are traded against each other. The Nigerian forex market has grown rapidly over the years, and it is now a major source of income for many Nigerians. However, when did forex trading start in Nigeria? In this article, we will discuss the history of forex trading in Nigeria.
Forex trading in Nigeria can be traced back to the 1980s when the Nigerian government introduced the Structural Adjustment Program (SAP). This program aimed to liberalize the country’s economy, reduce the government’s involvement in economic activities, and promote foreign investment. As a result, the government allowed banks to engage in foreign exchange transactions.
However, forex trading was not popular in Nigeria until the 1990s when the internet became more accessible. With the internet, Nigerians could easily access forex trading platforms and trade in the global market. The first online forex trading platform in Nigeria was launched in 2006 by a company called InstaForex. Since then, many other forex trading platforms have emerged in Nigeria.
The Central Bank of Nigeria (CBN) regulates forex trading in Nigeria. In 2004, the CBN introduced the Foreign Exchange Market (FEM) to regulate forex transactions in Nigeria. The FEM is a single market where all forex transactions take place. The CBN also introduced a set of guidelines and regulations to ensure that forex trading is conducted legally and transparently.
In 2015, the CBN banned the use of Nigerian debit and credit cards for forex transactions. The ban was aimed at preventing capital flight and encouraging the use of local currency. However, this ban was later lifted in 2018, allowing Nigerians to use their debit and credit cards to trade forex again.
Forex trading has become a popular investment option in Nigeria due to its high returns and low barriers to entry. With as little as $10, Nigerians can start trading forex and potentially earn significant profits. Forex trading is also flexible, allowing traders to trade from anywhere in the world and at any time.
However, forex trading is not without risks. The forex market is highly volatile, and prices can change rapidly, making it difficult to predict market movements. Traders can lose their entire investment if they are not careful. Therefore, it is essential to understand the risks and develop a sound trading strategy before investing in forex.
In conclusion, forex trading in Nigeria started in the 1980s when the government introduced the Structural Adjustment Program. However, it was not popular until the internet became more accessible in the 1990s. The CBN regulates forex trading in Nigeria through the Foreign Exchange Market and a set of guidelines and regulations. Despite its risks, forex trading has become a popular investment option in Nigeria due to its high returns and low barriers to entry.
