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.
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.
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.
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?
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.