Economy
Risks of Forex Trading in Africa
Foreign exchange, or forex, the market is one of the most exciting and potentially lucrative markets in the world. With a daily turnover of trillions of dollars, it offers investors from all over the world an opportunity to make huge profits. However, for those looking to invest in Africa’s forex market, there are some risks that must be considered before taking the plunge.
This article will discuss what these risks are and how they can be managed so that you can make informed decisions about investing in African forex trading. We will also look at why this particular market has become increasingly attractive to those looking for high returns on their investments and why it is important for investors to understand both the potential rewards and dangers associated with this type of investment.
Forex Regulation in Nigeria
Many forex traders in Africa are concerned about the lack of regulation for forex trading in some countries and therefore answering the question of whether is forex regulated in Nigeria is a major factor in deciding whether to embark on trading activities. Fortunately, the Nigerian government has enacted laws and regulations that protect investors from fraud and other illegal activities.
The Central Bank of Nigeria (CBN) is responsible for overseeing forex trading in Nigeria and ensuring that all transactions are conducted in accordance with existing laws and regulations. Nigerian forex traders must register with the CBN as well as acquire a valid license to trade legally within the Nigerian market.
Volatility in African Markets
One of the main risks associated with forex trading in Africa is the high level of volatility in the markets. This is due to a variety of factors such as political instability, currency devaluation, and low liquidity levels. As with any investment, there is always the potential for losses when trading in foreign currencies, especially in countries where the economic landscape can change quickly.
The Risks of Forex Trading in Africa
Difficult to Predict
One of the biggest risks associated with forex trading in Africa is that due to its relative economic instability, it can be difficult to make accurate predictions about currency movements. This means there is a risk that investors could suffer significant losses if they open long or short positions at the wrong time. It is therefore important for traders to use reliable data and analysis tools to help them make informed decisions about when to open and close positions.
Potential for Fraud or Scams
Another key risk that comes with trading in Africa is the potential for fraud or scams. As with any investment, it is important that you do your research before investing in any forex market in Africa. This means checking out the reputation of brokers and ensuring that they are reliable and trustworthy. You should also make sure you fully understand the terms and conditions of any trading accounts you open, as well as check for any additional fees or charges.
Can Be Highly Risky
Finally, it is important to remember that forex trading can be highly risky and there is no guarantee of success. Investing in this type of market requires a significant level of knowledge and experience, so it is important to ensure that you understand the risks associated with this type of trading before committing any funds. This will help ensure that your investments are safe and secure, as well as help mitigate the potential losses that can result from taking too much risk in Africa’s forex market.
Conclusion
By understanding the risks associated with forex trading in Africa and taking steps to minimize them, you can ensure that your investments are secure. With a little knowledge and experience, you can make smart decisions about when to enter and exit positions, which will help to maximize your potential profits while minimizing risk.
As always, it is important to remember that no investment is without risk and it pays to be cautious when trading in volatile markets. Ultimately, forex trading can be a great opportunity for investors to earn profits, but it is important to stay informed of the risks and understand the regulations that apply.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange decreased by 0.53 per cent on a week-on-week basis in Week 17 of the 2025 trading year.
This depleted the market capitalisation of the bourse by N10.14 billion in the four-day trading week to N1.914 trillion from the N1.924 trillion recorded in the previous week and the NASD Unlisted Securities Index (NSI) slid by 17.32 points to 3,269.06 points from the 3,286.38 points posted in Week 16.
There were only four trading days last week due to the Easter break stretching into the new week, though the market witnessed a higher turnover.
The volume of securities bought and sold by the market participants soared by 293,055.9 per cent to 3.9 billion units from the 1.33 million units recorded a week earlier, and the value of shares skyrocketed by 33,661.6 per cent to N9.9 billion from the N29.35 million achieved in the preceding week.
The most traded security by value for the week was Infrastructure Credit Guarantee (InfraCredit) Plc with N9.5 billion, Geo-Fluids Plc recorded N355.4 million, FrieslandCampina Wamco Nigeria Plc traded N7.2 million, Central Securities Clearing System (CSCS) Plc transacted N3.8 million, and Afriland Properties Plc posted N2.5 million.
Also, InfraCredit Plc was the most traded instrument by volume with 3.7 billion units, Geo-Fluids Plc transacted 207.7 million units, UBN Property Plc recorded 1.04 million units, FrieslandCampina Wamco Nigeria Plc traded 0.201 million units, and CSCS Plc exchanged 0.178 million units.
Five securities ended on the losers’ table, with FrieslandCampina Wamco Nigeria Plc leading after shedding 6.0 per cent to end at N35.37 per share compared with the previous week’s N37.64 per share.
Further, 11 Plc fell by 3.8 per cent to close at N236.25 per unit versus N245.50 per unit, UBN Property Plc lost 3.2 per cent to trade at N2.10 per share versus N2.17 per share, CSCS Plc declined by 1.8 per cent to N21.71 per unit from N22.10 per unit, and Afriland Properties Plc slumped by 0.1 per cent to N17.78 per share from N17.80 per share.
By Dipo Olowookere
A total of 1.854 billion shares worth N56.025 billion were transacted in 51,386 deals at the Nigerian Exchange (NGX) Limited last week compared with the 1.525 billion shares valued at N43.006 billion traded a week earlier in 51,156 deals.
The market was opened for business in the week for four days because of the public holiday observed last Monday for Easter.
In the week, the financial services sector led the activity chart with 1.266 billion stocks valued at N29.400 billion exchanged in 24,351 deals, contributing 68.28 per cent and 52.48 per cent to the total trading volume and value, respectively.
The ICT industry followed with 136.707 million stocks worth N12.472 billion in 2,974 deals, and the consumer goods space traded 118.617 million equities for N4.415 billion in 5,869 deals.
The trio of Fidelity Bank, Access Holdings, and GTCO accounted for 797.873 million shares worth N22.043 billion in 8,618 deals, contributing 43.03 per cent and 39.34 per cent to the total trading volume and value, respectively.
Business Post reports that 64 equities appreciated in the four-day trading week versus 31 equities in the previous week, 27 equities depreciated versus 44 equities in the previous week, and 57 equities remained unchanged versus 72 equities recorded in the previous week.
International Breweries topped the gainers’ log with a 40 per cent rise to settle at N7.70, NASCON appreciated by 26.22 per cent to N52.95, Africa Prudential expanded by 25.64 per cent to N17.15, Vitafoam Nigeria rose by 21.22 per cent to N44.85, and Ikeja Hotel jumped by 21.00 per cent to N12.10.
On the flip side, VFD Group topped the losers’ chart with a decline of 82.19 per cent to trade at N17.10, John Holt lost 18.60 per cent to finish at N6.30, Dangote Cement shed 10.00 per cent to close at N432.00, Tripple Gee crashed by 10.00 per cent to N1.98, and Haldane McCall depreciated by 9.96 per cent to N4.70.
The All-Share Index (ASI) and the market capitalisation appreciated by 1.46 per cent and 1.47 per cent each to close at 105,752.61 points and N66.465 trillion, respectively.
Similarly, all other indices finished higher apart from the premium, energy, industrial goods, growth and sovereign bond indices, which depreciated by 0.43 per cent, 0.07 per cent, 3.44 per cent, 0.41 per cent and 0.06 per cent, respectively.
By Adedapo Adesanya
The Nigeria Employers’ Consultative Association (NECA) has expressed its commitment to strengthening the Micro, Small and Medium Enterprises (MSMEs) ecosystem in Nigeria.
The Director-General of NECA, Mr Adewale Smatt Oyerinde, made the commitment while announcing the 2025 edition of the flagship MSMEs Fair scheduled to hold on Tuesday, May 6, 2025, at NECA House, Alausa, Lagos.
Mr Oyerinde said MSMEs are the lifeblood of the economy, noting that the Fair is designed to empower them with the tools, knowledge, and networks needed to thrive.
This year’s Fair will feature a keynote address by Mrs Adenike Adeyemi, CEO of FATE Foundation, a leading organization in enterprise development. Her address is expected to highlight innovative approaches to MSME sustainability and growth in Nigeria’s dynamic economy.
A major highlight of the fair will be the presence of key regulatory agencies, which will engage directly with entrepreneurs to address critical pain points around licensing, compliance, taxation, and business registration. This regulatory dialogue aims to demystify bureaucratic processes and promote a more enabling environment for enterprise development.
Themed Galvanizing MSMEs for Economic Growth and Stability, the event will bring together financiers, tech experts, regulators, and business leaders to offer practical insights, strategic guidance, and real-time business support to participants. Entrepreneurs will have the opportunity to exhibit their products and services, engage with potential investors, and connect with stakeholders across various sectors.
The fair will also feature exhibitions by entrepreneur across sectors, which will give them the opportunity to showcase their products and services to the public.
The programme offers entrepreneurs a platform to be enlightened on business development strategies, digital transformation, access to finance, and market expansion—equipping MSMEs with actionable knowledge for long-term success.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN