Buying and selling dollars business in Nigeria is a business practice which has been prevalent for over 4 decades.
The business’ of buying and selling dollars in Nigeria is done by various people with different intentions. Some do it to get rich, while others do it to get out of the country. With the increase in this trade, there are some risks that come with it. However, these risks can be mitigated if you know what you’re doing.
This article will give you all the information you need about buying and selling dollars business in Nigeria including how to buy and sell dollars, what you need to consider before buying or selling dollars, the risks involved, and how to mitigate these risks.
All You Need About Buying and Selling Dollars Business in Nigeria
Risks involved in dollar buying and selling in Nigeria
The risks involved in dollar buying and selling business in Nigeria are price fluctuations, fraud, and exchange rate.
The first risk is that of price fluctuations. Dollar prices fluctuate by as much as 10% every day. This is because there is no universal pricing structure for the dollar in Nigeria. This means that you can’t know for sure how much your dollar will be worth the next day if you’re not willing to sell it on the spot. The values of the dollar and other foreign currencies can change at any time, so be aware of this before making a purchase or sale.
Another risk is fraud. When trading with someone who knows more than you do about the trade, they may try to cheat you by exchanging counterfeit dollars or giving you a bad deal. With this risk, it’s important to find someone with a lot of experience who can help with these things before deciding to trade dollars with them.
In addition to these risks, there’s also the risk of exchange rates when trading dollars in Nigeria. You must always be aware of how much your money will actually cost when you make a purchase or sell a good because different shops will have different exchange rates depending on what they buy and sell.
Way to Buy the Dollar in Nigeria
In Nigeria, the US Dollar business is traded on a currency black market. To buy one, you’ll have to pay a premium on the purchase price which is usually above the official exchange rate. The process of buying a dollar in Nigeria is simple. You’ll need to find a seller who has access to American dollars and decide on a mutually agreed upon price before exchanging the cash for the currency.
When it comes to finding sellers with access to American dollars, there are many avenues. One way to find sellers with access to American dollars is through acquaintances or friends who work in places that deal with some international trade like banks or import/export companies. A second way is by going online and browsing some sites that offer foreign exchange services.
Way to Sell the Dollar in Nigeria
In Nigeria, you can buy and sell a dollar for a certain number of naira. The price of the dollar changes from time to time depending on the value of the naira.
It’s important to note that it’s illegal to buy dollars from external sources. This requires you to have a foreign account or a Nigerian company which has an account outside of Nigeria.
There are two ways you can sell your dollars in Nigeria:
1) If you have some dollars left over from your travels abroad, you can visit any commercial bank. They will provide you with a receipt for the amount withdrawn from the ATM machine and convert it into naira at their official exchange rate which is always under market price.
2) Alternatively, if you want to make more money than what the commercial bank would offer, you could visit one of the many forex bureaus in Lagos or Abuja. There are many forex bureaus in Lekki and Victoria Island as well but they charge up to 30% commission on top of what is offered by commercial banks like Zenith Bank, First Bank and Union Bank etc. These charges are usually for paperwork and transport charges or they may be charged
Mitigating risks of dollar buying and selling in Nigeria
Buying and selling dollars in Nigeria is a risky business. You could be buying fake or counterfeit dollars or you could be caught by the police for trying to get out of the country illegally. However, with some precautions, you can mitigate these risks.
First, always check the authenticity of your dollar bills before purchasing them from an unknown person. You can do this by rubbing your fingers over the security strip that runs through the bill. If it feels rough, it’s a counterfeit bill. Another way to tell if a bill is a phony is to hold it up to a light and look at the watermark. A real dollar bill will have a clear image while a counterfeit one won’t be as clear because it’s been reproduced on cheaper paper.
Another risk involved in dollar buying and selling in Nigeria is getting arrested for illegal currency trade practices such as trying to leave the country with money that exceeds $10,000. To avoid this risk, only buy and sell $10,000 maximum when exchanging your money at any given time – not more than $10,000 but never less than $5-$1000 depending on how much you need to exchange at any given time so that you don’t exceed what is allowed in Nigerian law and get.
Why you should buy and sell dollars
The people who buy and sell dollars are called “Dollar Men”. This is because they are the ones who have to go to other countries in order to buy US Dollars in the currency market. The Dollar Men bring back these currencies in order to sell them at a higher price to people in Nigeria. Therefore, the Dollar Men are usually individuals who travel abroad to find work in any country they can find it.
Nigerians buy and sell dollars because they want either more money or access to foreign currency. For example, some Nigerian entrepreneurs do this so that they can purchase goods from foreign countries and still be able to make a profit on them when selling them locally. While others do it so that they can leave their country for greener pastures, and use the money as a way of gaining access.