Why are Nigerians susceptible to forex scams? – Nairametrics
A persistent loss of value in the local currency, the naira, has precipitated a heightened demand for foreign exchange for saving spare cash in a manner that hedges against inflation. Besides this, however, many Nigerians have also adopted forex trading as a business and a number of these ‘traders’ often seek the participation of people with spare cash as ‘investors’ in the forex trading business. While a few have genuinely provided value to their patrons, many have taken their investors to the cleaners, defrauding them to the tune of several millions of naira.
According to a report released by Dailyfx (a forex research firm) in 2020, Nigeria’s forex traders traded currency positions worth as much as $1.25 million on average, daily.
While the volume of transactions done so far is huge enough to build an industry, it is also tempting enough to attract scammers,…