What Does Financial Regulation in Nigeria Look Like?

Share









Tweet



0

Shares



The center of the world is no longer located in one supernation.

Rather, we are experiencing an economic boom across emerging markets

globally, shifting our perception of the world forever. Rapidly

developing countries are at the forefront of this massive revolution

and global growth, producing and exporting more than ever before. One

of the most important parts of this global chain of development and

growth is the African continent, home to one of the biggest land

masses on earth and a rapidly expanding population.









(adsbygoogle = window.adsbygoogle || []).push({});





Africa has long been considered the poorest part of the planet with

widespread poverty, high crime rates and very low human development.

However, this picture is now changing as Africa keeps attracting more

and more investments, businesses and innovative ideas. Some of the

countries on the continent are gradually becoming global innovation

hubs and tech superpowers. To try and foster the growth of these

industries, African governments are doing their best in order to

support companies, innovation and novelty.







(adsbygoogle = window.adsbygoogle || []).push({});

Finance is essentially a technical term referring to this study,

production, and management of funds and other financial sources, learn

more https://personaltradelines.com. Specifically, it refers to the

questions of how cash is acquired or used, and exactly what the

various uses of that capital might be.



This is the most beneficial and crucial process for African nations.

Countries that have been living in unprecedented poverty and social

exclusion for centuries now have a chance to thrive as innovators.

That is why fintech and high tech solutions to traditional problems

are so common in Africa. In countries like Ethiopia, Kenya and others,

fintech has conquered the world of finance as the vast majority of

people already pay their utilities and other bills through phones and

they also have accountants Edinburgh to handle their finance.



Nigeria: the rising star on the continent



The most populous country in Africa is quickly becoming an

international financial hub for overseas businesses whilst supporting

local initiatives and offering incubation services to them. This way,

African governments try to reduce dependence on foreign companies

whilst supporting their own local initiatives. At the end of the day,

this is exactly what makes the economy flow in the right direction.







(adsbygoogle = window.adsbygoogle || []).push({});

Notably, Nigeria is known for its extremely liberal financial

regulations. As a result, one sector has benefited the most. The

Nigerian forex brokers list has been rapidly expanding over the past

few years. This is a logical consequence of the stronger Nigerian

naira, the national currency that was severely devalued but now enjoys

strengths it has never seen before. That is why Forex trading has

become particularly popular across Nigeria. Naira pairs well with

other currencies, such as the United States Dollars, Great British

Pounds and Euros.



The increased volume of forex trading is one of the main factors in

developing Nigeria, and particularly Abuja as Africa’s major

financial hub. Companies from all across Africa and the world now want

to be represented on the continent with the offices in the Nigerian

capital. This is a big positive change for the country that has not

been recognized by the international financial radar decades.



Besides Forex trading, the banking sector is thriving as well. With a

vast rural population, people started using fintech services in order

to curb the transportation costs and inconvenience. Using digital

technology, Nigerian major banks such as Zenith Bank and Diamond Bank

managed to reach out to more people than ever before. Millions across

rural and urban Nigeria now have access to financial services provided

by banks



Yet, all of this has been possible with the smooth and a

well-regulated financial system. The financial sector in Nigeria is

not overregulated and enjoys relatively little pressure from the state

authorities when compared to other nations across Africa. The

financial regulations are aimed at allowing more companies to open up

businesses in the country whilst ensuring a safe and welcoming

environment. This is of utmost importance for any business-owner

willing to invest in a particular country. But what authorities

regulate the sector in Nigeria?







(adsbygoogle = window.adsbygoogle || []).push({});

What is the financial regulatory body in Nigeria?



Just like in many other countries around the world and in Africa, the

Central Bank of Nigeria is primarily in charge of regulating the

financial market of the nation. Act 2007, also known as the CBN Act

gives the Central Bank of Nigeria the right and the authority to

regulate, monitor and overlook commercial banks, as well as all other

financial institutions and processes in Nigeria.



One of the most important tasks for the Central Bank of Nigeria is to

effectively monitor and regulate the foreign exchange market. As

mentioned earlier in the article, Forex trading has become an

important part of the Nigerian economy over the past few years. The

Central Bank of Nigeria is eligible to register and license fore

brokerage firms across the country whilst regulating their work for

years to come. This authority is a perfect regulatory body for the

sector, making sure that the environment is fair for everyone and that

no illegal activity takes place in the market.



All in all, the Nigerian financial market is very free, yet well

regulated in efforts to avoid illegal activities. With the

skyrocketing number of forex traders, banks and expatriates present in

Abuja and elsewhere across the nation, Nigeria is set to become the

economic, cultural and transport center of Africa.













(adsbygoogle = window.adsbygoogle || []).push({});







(adsbygoogle = window.adsbygoogle || []).push({});

jQuery(document).ready(function( $) { $.post(

'https://nigerianfinder.com/wp-admin/admin-ajax.php', {action:

'mts_view_count', id: '291122'}); });









Share









Tweet



0

Shares

Comments

Popular posts from this blog

Problems of Agricultural Programmes in Nigeria

Problems of Contributory Pension Scheme in Nigeria

Problems of Curriculum Planning in Nigeria