Economy
Exchange Rate Convergence Will Benefit Capital Market—Oyedele
By Adedapo Adesanya
The Fiscal Policy Partner and Africa Tax Leader at consultancy giant, PwC, Mr Taiwo Oyedele, has said the exchange rate convergence in Nigeria would translate to a significant rise in government debt in Naira terms by about N12 trillion to N90 trillion.
In a social media post, the tax expert said with the Naira now exchanging with the US Dollar market-determined rates across the market segments, a significant market distortion has been removed.
He added this would come with both positive and negative implications, noting that the country’s external debt at $42 billion, according to the Debt Management Office (DMO), will increase by the difference between the old and new rates.
He stated that this would also raise the nation’s debt-to-GDP ratio by about 5 per cent, with a corresponding increase in debt service cost with respect to foreign debt service.
Currently, Nigeria services debt with about 96 per cent of its earning, meaning for every N1 it earns, 96 Kobo is used to pay interest to its debtors.
He also noted that this would translate to an increase in government revenue in Naira terms resulting in a higher tax/revenue to GDP ratio.
However, “Corporate tax collection may, however, decline as many businesses crystallize forex losses due to the higher exchange rate,” he warned, adding that the collapse of the multiple rates regime, as instructed by multilateral lenders, could lead to a possible reduction in the budget deficit.
This will occur if the government’s forex revenue exceeds foreign currency obligations. On the flip side, an increase in budget deficit will arise.
For the average Nigerian, petrol prices will rise in the coming days as the pump price of petrol could inch closer to the current pump price of diesel, which is already deregulated.
He advised that there should be some cost savings as government discontinues the various fx interventions —Naira4Dollar and RT200 Rebate Scheme — which cost tens of billions of Naira, stressing that Nigeria must attract fx inflows, especially from portfolio investors, FDI and exporters proceeds.
“Impact on diaspora remittances would be marginal,” he predicted.
He also noted that the capital market would benefit as it is likely to appreciate further as foreign investors take position. The Nigerian stock market had appreciated on Monday and Tuesday but eased multi-year highs on Wednesday.
“There should be negligible impact on the general prices of goods and services as products already factored in parallel market rates to a large extent,” he added.
He tasked that while the move was positive, the Bola Tinubu administration needed to manage the dynamics to restore confidence.
“The backlog of forex demands needs to be addressed, and government should be ready to supply forex to stabilise the exchange rate in the short term.”
He further advised them to relax capital control and administrative bottlenecks, including unbanning the list of items prohibited for fx (and complementing with higher import duties).
He also advised the removal of the need for a certificate of capital importation to prevent the parallel market rate from simply moving further away from the official market rate.
“Stop the demand for certain taxes and levies in foreign currency, it creates unnecessary fx demand without adding to supply.
“The aggregate demand for fx across markets should reduce as a round-tripping incentive is removed, for instance, people who fake foreign travels just to get FX at discounted rates.
“Also, Nigeria’s sovereign credit rating should improve if this is complemented with the right fiscal and monetary policies, thereby attracting more fx inflows and lowering the cost of borrowing,” he added.
By Adedapo Adesanya
The Naira further weakened against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) for the fourth straight session this week on Thursday, February 26.
At the official market yesterday, the Nigerian Naira lost N3.71 or 0.27 per cent to trade at N1,359.82/$1 compared with the previous session’s N1,356.11/$1.
In the same vein, the local currency depreciated against the Pound Sterling in the same market window on Thursday by N8.27 to close at N1,843.23/£1 versus Wednesday’s closing price of N1,834.96/£1, and against the Euro, it crashed by N8.30 to quote at N1,606.89/€1, in contrast to the midweek’s closing price of N1,598.59/€1.
But at the GTBank forex desk, the exchange rate of the Naira to the Dollar remained unchanged at N1,367/$1, and also at the parallel market, it maintained stability at N1,365/$1.
The continuation of the decline of the Nigerian currency is attributed to a surge in foreign payments that have outpaced the available Dollars in the FX market.
In a move to address the ongoing shortfall at the official window, the Central Bank of Nigeria (CBN) intervened by selling $100 million to banks and dealers on Tuesday.
However, the FX support failed to reverse the trend, though analysts see no cause for alarm, given that the authority recently mopped up foreign currency to achieve balance and it is still within the expected trading range of N1,350 and N1,450/$1.
As for the cryptocurrency market, major tokens posted losses over the last 24 hours as traders continued to de-risk alongside equities following Nvidia’s earnings-driven pullback, with Ripple (XRP) down by 2.7 per cent to $1.40, and Dogecoin (DOGE) down by 1.6 per cent to $0.0098.
Further, Litecoin (LTC) declined by 1.3 per cent to $55.87, Ethereum (ETH) slipped by 0.9 per cent to $2,036.89, Bitcoin (BTC) tumbled by 0.7 per cent to $67,708.21, Cardano (ADA) slumped by 0.6 per cent to $0.2924, and Solana (SOL) depreciated by 0.4 per cent to $87.22, while Binance Coin (BNB) gained 0.4 per cent to sell for $629.95, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closing flat at $1.00 each.
By Adedapo Adesanya
Crude oil settled lower on Thursday as investors tracked developments in talks between the United States and Iran over the latter’s nuclear programme, weighing potential supply concerns if hostilities escalate.
Brent crude futures lost 10 cents or 0.14 per cent to close at $70.75 a barrel, while the US West Texas Intermediate (WTI) crude futures depreciated by 21 cents or 0.32 per cent to $65.21 a barrel.
The US and Iran held indirect talks in Geneva on Thursday over their long-running nuclear dispute to avert a conflict after US President Donald Trump ordered a military build-up in the region.
Prices had gained earlier in the session after media reports indicated the talks had stalled over US insistence on zero enrichment of uranium by Iran, as well as a demand for the delivery of all 60 per cent-enriched uranium to the US.
However, prices then retreated after the two countries extended talks into next week, reducing the immediate strike potential.
Iran’s Foreign Minister, who confirmed talks will continue next week, said Thursday’s talks were the most serious exchanges with the US yet, saying Iran clearly laid out its demand for lifting sanctions and the process for relief.
His counterpart from Oman, who is handling the talks, said significant progress was made in Thursday’s talks. The Omani minister’s upbeat assessment followed indirect talks between Iranian Foreign Minister and US envoys Steve Witkoff and Jared Kushner in Geneva, with one session in the morning and the second in the afternoon.
He will also hold talks with US Vice President JD Vance and other US officials in Washington on Friday.
The Trump administration has insisted that Iran’s ballistic missile program and its support for armed groups in the region must be part of the negotiations.
The American President said on February 19 that Iran must make a deal in 10 to 15 days, warning that “really bad things” would otherwise happen.
On Tuesday, he briefly laid out his case for a possible attack on Iran in his State of the Union speech, underlining that while he preferred a diplomatic solution, he would not allow Iran to obtain a nuclear weapon.
Meanwhile, the US continues to amass forces in the Middle Eastern region, with the military saying it is prepared to execute orders given by the US President.
Choosing a Forex broker is essentially picking a partner to hold the wallet. In 2026, the market is flooded with flashy ads promising massive leverage and “zero fees,” but most of that is just noise. Real transparency is becoming a rare commodity. It isn’t just a corporate buzzword; it’s the only way a trader can be sure they aren’t playing against a stacked deck. If a broker’s operations are a black box, the trader is flying blind, which is a guaranteed way to blow an account.
The Scam of “Zero Commissions”
The first place transparency falls apart is in the pricing. Many brokers scream about “zero commissions” to get people through the door, but they aren’t running a charity. If they aren’t charging a flat fee, they are almost certainly hiding their profit in bloated spreads or “slippage.” A trader might hit buy at one price and get filled at a significantly worse one without any explanation. This acts as a silent tax on every trade. A transparent broker doesn’t hide the bill; they provide a live, auditable breakdown of costs so the trader can actually calculate their edge.
The Conflict of Market Making
It is vital to know who is on the other side of the screen. Many brokers act as “Market Makers,” which is a polite way of saying they win when the trader loses. This creates a massive conflict of interest. There is little incentive for a broker to provide fast execution if a client’s profit hurts their own bottom line. A broker with nothing to hide is open about using an ECN or STP model, simply passing orders to the big banks and taking a small, visible fee. If a broker refuses to disclose their execution model, they are likely betting against their own clients.
Regulation as a Safety Net
Transparency is worthless without an actual watchdog. A broker that values its reputation leads with its licenses from heavy-hitters like the FCA or ASIC. They don’t bury their regulatory status in the fine print or hide behind “offshore” jurisdictions with zero oversight. More importantly, they provide proof that client funds are kept in segregated accounts. This ensures that if the broker goes bust, the money doesn’t go to their creditors—it stays with the trader. Without this level of openness, capital is essentially unprotected.
The Withdrawal Litmus Test
The ultimate test of a broker’s transparency is how they handle the exit. There are countless horror stories of traders growing an account only to find that “technical errors” or vague “bonus terms” prevent them from withdrawing their money. A legitimate broker has clear, public rules for getting funds out and doesn’t hide behind a wall of unreturned emails. If a platform makes it difficult to see the exit strategy, it’s a sign that the front door should have stayed closed.
Conclusion
In 2026, honesty is the most valuable feature a broker can offer. It is the foundation that allows a trader to focus on the charts instead of worrying if their stops are being hunted. Finding a partner with clear pricing, honest execution, and real regulation is the first trade that has to be won. Flashy marketing is easy to find, but transparency is what actually keeps a trader in the game for the long haul.
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