Economy
Why Cryptocurrency Trading Has Begun to Feature Prominently in the Nigerian Marketplace
Similar to many African nations, Nigeria is currently in the midst of a digital revolution. More individuals have access to the Internet than ever before and as a result, a host of new financial economic opportunities are beginning to present themselves.
Cryptocurrencies are a perfect example of such a paradigm shift and this marketplace has already attracted both novice and senior investors alike. What are some of the primary benefits associated with this sector and might there be any drawbacks to consider? It pays to look at both sides of the proverbial coin in order to better appreciate where the domestic economy may be headed.
The Notion of a Decentralized Trading Platform
Most cryptocurrency traders think that one of the most appealing aspects of this marketplace involves the use of the blockchain in order to access decentralized investment opportunities. Cryptocurrencies are not governed by any type of central bank and therefore, issues such as inflation and interest rate hikes do not play nearly as important of a role.
Nigerians are also keen to become involved thanks to the decidedly anonymous nature of crypto trading. This has become a practical concern due to increased cybersecurity threats on both a national and international stages. Fiat-backed investments are not nearly as anonymous in nature.
A Market that Knows no Geographical Boundaries
Similar to the Forex sector, cryptocurrency trades can be carried out 24 hours a day and seven days a week. This is ideal for individuals who need to accommodate hectic schedules or who might simply wish to trade after hours and at their personal convenience. Online investment platforms likewise provide around-the-clock access; enabling traders to take advantage of the latest movements at a moment’s notice.
Relatively Low Entry-Level Investments
Although institutional cryptocurrency investors often make news headlines for turning massive profits (and losses on occasion), it is important to mention that this very same marketplace is now open to the general public. Nigerians have become more aware of the potential benefits and registering with a qualified digital platform takes only a matter of minutes.
Furthermore, traders will not need to possess a significant bankroll in order to become involved. The fact that companies are now catering to entry-level positions opens up a world of possibilities even for those who are governed by tight finances.
Intuitive Trading Platforms
Speaking of online trading platforms, Nigerians can leverage a host of professional options. Many of these software packages have been engineered with a user-friendly edge so that little prior experience is required. Some are now offering tutorials and lessons on cryptocurrency basics including:
- Fundamental blockchain principles.
- A closer look at altcoins.
- The top cryptocurrencies at the moment.
- The principle of margin and swing trading.
- How to read technical charts.
It is now clear to see that getting in on the proverbial “ground floor” has never been more of a reality.
Possible Drawbacks
A dose of pragmatism is nonetheless required. Losses can and do occur within the cryptocurrency marketplace. Furthermore, these assets are not currently governed by any central body (such as a government coalition or a central bank). This has caused some individuals to question its inherent levels of transparency.
Another possible issue involves those who choose to invest in tokens with a much smaller market capitalization (altcoins generally fall into this category). Sizeable trades can quickly generate a fair amount of volatility; causing both profits and losses to mount within a relatively short period of time.
A final concern is associated with how future governmental regulations may influence the entire cryptocurrency ecosystem. For example, the United States Securities and Exchange Commission (SEC) is currently engaged in a heated debate regarding whether or not cryptocurrencies should be classified as traditional securities. Some investment analysts feel that tighter governmental regulations may cause larger institutional traders to look elsewhere; a scenario that would negatively impact the value of crypto tokens across the boards.
A Bright (Digital) Future
Notwithstanding the possible concerns outlined above, cryptocurrencies are indeed here to stay. They have now begun to attract a new generation of Nigerian investors that are keen to understand how these unique digital tokens function. Although no one is entirely certain what the future may hold, many feel that this sector could soon rival the Forex marketplace in terms of its overall popularity. As always, only time will tell.
By Aduragbemi Omiyale
One of the paint makers in Nigeria, Premier Paints Plc, is currently in talks with a new investor, Xenergi Limited, for the purchase of 51 per cent stake in the company.
Xenergi Limited intends to acquire shares of Clover Global Resources Limited and TGHL Capital Limited in the organisation.
Business Post gathered that the new investor will buy 39.02 per cent from Clover Global Resources Limited and 15.20 per cent from TGHL Capital Limited.
The deal, according to a regulatory notice issued on Tuesday on the Nigerian Exchange (NGX) Limited, will involve about 63 million shares of Premier Paints.
At the current share price of the paint producer, this should be about N630 million as it closed at N10.00 per unit on NGX on December 16, 2025.
“Subject to obtaining required regulatory approvals, the transaction is expected to close before January 31, 2026.
“The company will continue to inform the public of the progress of the transaction,” the disclosure signed by the company secretary, Alozie Nwokoro, said.
By Adedapo Adesanya
The Naira was flat against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, December 16, retaining the previous closing value of N1,451.82/$1.
In the same vein, the local currency saw no movement against the Pound Sterling and the Euro in the spot market during the session at N1,943.98/£1 and N1,705.74/€1, respectively.
Also, the Nigerian Naira remained unchanged in the black market yesterday at N1,475/$1 and was N1,460/$1 at the GTBank forex counter.
The Central Bank of Nigeria (CBN) has strengthened US Dollar supply with $250 million to authorised dealer banks at the official window cumulatively as foreign portfolio investors, exporters and non-bank corporate supply dripped.
The spread between official and other non-regulated markets decreased to N30.59$/1 from N44.57/$1, from the previous week, research subsidiary of Coronation Merchant Bank Limited said in a report.
FX analysts said foreign exchange inflows through the Nigerian Foreign Exchange Market decreased to $716.3 million from $844.70 million in the previous week , a 15 per cent drop in a week.
Foreign portfolio investors accounted for the highest share of inflows at 32.98 per cent, followed by exporters at 30.84 per cent, the CBN (17.36 per cent), Non-bank Corporates (16.94 per cent), others (0.72 per cent) and Individuals (0.63 per cent).
On Monday, Nigeria’s headline inflation rate eased to 14.45 per cent in November 2025, down from 16.05 per cent recorded in October, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), representing a decrease of 1.6 percentage points month-on-month and marks a significant moderation compared to the same period last year.
As for the cryptocurrency market, there was some recoveries after overall capitalization falling below $3 trillion for the third time in a month. Large-cap assets, particularly those with Exchange Traded Fund (ETF) exposure, are experiencing selling pressure as institutional investors reassess risk.
Ripple (XRP) appreciated by 1.5 per cent to $1.92, Litecoin (LTC) expanded by 1.5 per cent to $78.91, Dogecoin (DOGE) rose by 0.8 per cent to $0.1308, Solana (SOL) went up by 0.4 per cent to $127.60, Binance Coin (BNB) grew by 0.3 per cent to $865.40, and Bitcoin (BTC) gained 0.2 per cent to sell at $86,735.17.
On the flip side, Cardano (ADA) depreciated by 1.0 per cent to $0.3802 and Ethereum (ETH) slumped by 0.4 per cent to $2,935.85, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were flat at $1.00 each.
By Dipo Olowookere
A marginal 0.01 per cent rise was recorded by the Nigerian Exchange (NGX) Limited on Tuesday. This was different from the flattish mode of the market the previous day.
Investor sentiment remained bullish as Customs Street finished with 31 price gainers and 26 price losers, implying a positive market breadth index.
Aluminium Extrusion topped the gainers’ log after it improved its price by 10.00 per cent to N9.35, Guinness Nigeria appreciated by 9.98 per cent to N263.40, Multiverse expanded by 9.95 per cent to N12.15, MeCure Industries also soared by 9.95 per cent to N45.85, and Sovereign Trust Insurance advanced by 9.89 per cent to N4.11.
Conversely, Haldane McCall led the losers’ chart after it shed 9.93 per cent to settle at N3.72, Veritas Kapital lost 9.09 per cent to close at N1.60, LivingTrust Mortgage Bank also declined by 9.09 per cent to N3.50, and Linkage Assurance depreciated by 5.71 per cent to N1.65.
During the trading day, the All-Share Index (ASI) went up by 21.23 points to 149,459.11 points from the previous day’s 149,437.88 points and the market capitalisation increased by N14 billion to N95.281 trillion from N95.267 trillion.
Yesterday, traders transacted 1.0 billion equities for N21.8 billion in 23,701 deals compared with the 553.1 million equities valued at N13.3 billion traded in 28,907 deals on Monday, representing a decline in the number of deals by 18.01 per cent, and a surge in the trading volume and value by 80.80 per cent and 63.91 per cent apiece.
Access Holdings traded 385.8 million stocks worth N7.7 billion, Champion Breweries transacted 111.8 million shares valued at N817.8 million, Sterling Holdings exchanged 85.5 million equities for N589.9 million, FCMB sold 74.7 million shares valued at N791.5 million, and First Holdco transacted 51.9 million equities worth N1.8 billion.
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