What Are The Impact And Problems Of Money Market In Nigeria Economy Growth?


5 Answers

Matt Domm Profile
Matt Domm answered
The Nigerian economy is based like any other economy on the money market, which is designed as a means of liquidity adjustment. As a financial instrument a country needs to be safe in their moves, but also make a potential path for growth. The money market in Nigeria needs to be infused with more liquidity or cash in order to help fund economic growth.
The money market in Nigeria is a private exchange meaning it is not on the world exchange like some of the larger countries around the world. Non-profit organisations help to fund it and thus it is limited to business members with the funds to grow the market. It is also a self-regulatory system with 10 functional trading floors.
This type of system can lead to misappropriation of funds and even bankruptcy as seen recently by some of the principals involved in the money market. There have been allegations of insider trading too. The largest problem by far is the corruption of the system that even transparency is unable to fix because there is not enough regulation.
If the system was working as it should, the impact on economic growth would be positive in that the economy could recover and support the nation. A money market is set up to be a support for the nation; however, when too many hands are in the basket it makes it extremely hard for the money market to work in the favour of everyone involved. This leads to bankruptcy for some and some top investments for others. Since the funds are private the person making the money decides where it goes and whether it helps the overlying issues or not. For this reason, one may see lower classes suffering, creating a mixture of anger among the citizens of Nigeria.
Anonymous Profile
Anonymous answered
Effect Of money markets on economic development in Nigeria
Karl Sagan Profile
Karl Sagan answered

I think it's so unfair that corruption of the system there is a commonly known fact. The money market should be oriented toward the people living there. But if the government doesn't want to help the nation, people can try earning money through foreign systems, like foreign currency. It's quite easy to do, so if you're interested, check this link and start making money.

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