What are the challenges facing money market in Nigeria?

What are the challenges facing money market in Nigeria?

The following are the key challenges confronting the financial markets development in Nigeria

• Inadequate skills for financial products development:
• The inadequate collaboration of regulators and stakeholders.
• Unavailability of investible fund for long term financial products.
• Weak risk management.

What is the main problem of money market?

One of the major problem of Indian Money Market is its inefficient and corrupt management. Inefficiency is due to faulty selection, lack of training, poor performance appraisal, faulty promotions etc. For the growth and success of money market, there is need for well trained and dedicated workforce in banks.

What is Nigerian money market?

Generally, the term ‘money market’ encompasses all forms of short-term lending and deposits, including savings and time deposits with commercial banks, but for the purpose of this paper on the Nigerian money market, it is taken strictly as trading in direct debt instrument, to the exclusion of intermediated debt …

Is Nigeria money market well developed?

In Nigeria, the money market is not yet vibrant and developed. The market is largely dominated by government instruments such as treasury bills and bonds, with a wide gap of deposit and lending rates or very high cost of borrowing when viewed.

What are the five major problems of money market in Nigeria?

The problems include: liquidity crisis, non-performing loans, growing gap between lending and deposit growth, widening current account deficit, a distortion in the interest rate market and a lack of skilled manpower.

Is my money market fund safe?

Both money market accounts and money market funds are relatively safe. Banks use money from MMAs to invest in stable, short-term, low-risk securities that are very liquid. Money market funds invest in relatively safe vehicles that mature in a short period of time, usually within 13 months.

Can you lose money on a money market account?

Money market accounts are sometimes called money market deposit accounts or money market savings accounts. Money market funds are not insured by the FDIC or the NCUA, which means you could possibly lose money investing in a money market fund.

Why is money market necessary in Nigeria?

The Nigerian economy is based on the money which is designed as a means of liquidity adjustment and also a potential path for development. Therefore the money market needs to be infused with more liquidity to ensure safety for investors in order to help fund economic development.

What is capital problem?

Capital problem While starting up the business, the money spend in the business was exceeded what they had expected. As an entrepreneur, they have to raise fund in order to starting up the business. At the very beginning time, they have no enough money and the facilities to operate the travel search engine.

Are money market funds safe?

Money market mutual funds (MMF) invest in short-term debt instruments, cash, and cash equivalents that are rated high quality. It is for this reason that money market mutual funds are considered safe or investment with minimal to low risk.

How is the money market regulated in Nigeria?

The Money Market which consists of Deposit Money Banks, and other Financial Institutions, like Macro-Finance Banks (MFB), and Purchasing Managers Index (PMI), is being regulated by CBN. The Nigerian Insurance Commission regulates Insurance Companies, Pension Committee regulates Pension Fund Administrators and Pensions Fund Custodians.

Why did the Nigerian stock market crash in 2009?

The Nigerian Capital Market has been facing Fluctuations, for the Price of Stocks. This has not proven favourable to Investors, in the Market. For example, Nigeria Capital Market along with others around the World, crashed during the Global Financial Crisis of 2009.

Which is an important part of the Nigerian financial system?

The Nigerian Capital Market is an important part of the Nigerian Financial System. Other Sectors within the system, include the Money Market, the Insurance and the Pension.

What are the main sectors of the Nigerian capital market?

The Nigeria Capital Market has more influence in sectors of the Economy than others. In the Capital Market, banks are the major valuable assets for investors. Few sectors in addition like Consumer and Industrial Goods. Nigeria’s other Sectors like Infrastructure, Oil, Gas, Mining, and Telecommunications.