The lack of forex supply in Nigeria is one of the major reasons why the country is struggling with forex earnings. Nigeria is heavily dependent on crude oil export proceeds and foreign borrowings. As a result, the country’s currency has experienced significant volatility and devaluations in the past. Recent developments have made the situation even worse. The Naira has declined significantly in the parallel market and slightly on the I&E platform, which is recognized by the Central Bank of Nigeria. Such conditions send the wrong signals to prospective investors who are looking to invest in the forex market.
Over 90% of Nigeria’s forex earnings come from oil revenue, and although the Naira is protected from market volatility due to currency pegging, this has resulted in overvaluation of the currency. In addition, international funds transfers are practically non-existent in the country. This situation may indicate that Nigeria’s economy is built on old-school economic policies and straw. However, there are many ways for the country to improve its forex earnings.
First, we should look at the media coverage of the foreign exchange market in Nigeria. We will look at how newspapers in Nigeria cover the foreign exchange market. The study also aims to examine the level of interpretation of foreign exchange stories in the media. For this, it analyzed three national dailies published in Nigeria. The study found that two of the three newspapers gave equal prominence to Forex stories, while only one had no mention at all. In conclusion, news coverage of foreign exchange in Nigeria is not as informative as it should be.
There is also a drop in the number of people trading in the Forex market. As a result, the number of Forex brokers has fallen dramatically. The country’s largest source of foreign exchange earnings is oil. The country’s currency is prone to volatility, and a poor naira may lead to job losses and a lack of competitiveness in business. To help stabilize the naira, the Central Bank of Nigeria has imposed forex restrictions.
Trading in the forex market in Nigeria is completely legal and regulated by the Central Bank of Nigeria (CBN). There are also strict regulations on foreign currency brokers in Nigeria, which are required to have a license from the central bank. The money earned from forex trading in Nigeria is taxed, so it’s important to select a regulated broker. The best forex brokers in Nigeria will offer you the highest leverage of up to 50:1 and a 5% margin requirement.
If you’re interested in Forex earning in Nigeria, you should choose a regulated online broker. FP Markets Broker is a reputable and well-regulated online forex broker. Its head office is in Australia, and its services are available to international players from all over the world. This is the ideal place to start trading. Once you’re ready, you can start earning profits with Forex. Just make sure to choose a forex broker that offers low forex fees.