Economy
Is Forex in Nigeria Halal or Haram? Case Study
The Muslim population in Nigeria is still expanding. According to estimates, 80–85 million Nigerians (approximately 50% of the population) identify as Muslims, many of whom are probably Sunnis (60 million). Any Nigerian citizen, regardless of religion, can trade forex using Nigerian brokers as long as they are using their own money. However, every individual has to follow their own religious laws to ensure they are trading within the guidelines.
In this article, we are going to try and answer the question, is forex in Nigeria Halal or Haram? Let’s jump right into it.
Forex Trading According to Islam
The mere exchange of currencies is legal as long as traders follow certain guidelines. Additionally, it is legal for Muslim traders to turn a profit when exchanging money. However, the forex market involves more than just exchanging currencies. It also entails making and carrying out various contracts when employing futures, options, interest trading, and other activities. Some people think that the fundamentals of forex trading are consistent with Islamic teachings, while others think they are in opposition to them.
Experts and academics disagree on whether trading in the forex market is halal (permissible) or haram (forbidden) in Islam. Islamic financial rules place a strong emphasis on avoiding interest (riba) and conducting morally and fairly. Under Islamic law, whether trading in foreign exchange is permitted in Nigeria or anywhere else depends on a number of variables, including the particular trading procedures and objectives. Let’s discuss some of the guidelines that determine how Muslim traders should conduct themselves in the market.
Regarding Interest (Riba)
Interest-based transactions are absolutely forbidden in Islamic finance. In traditional Forex trading, overnight-held positions (swap or rollover fees) may be subject to interest charges or earnings. This feature of forex trading can be in violation of Islamic teachings. Also, leveraged trading accounts constantly use an interest component which can render transactions Haram. But investors can utilize Islamic accounts that do not charge overnight fees. These accounts are tailor-made for Muslim traders to ensure they do not break religious laws when transacting.
Speculation and Gambling
Excessive speculation and actions that resemble gambling are discouraged in Islamic finance. Forex trading becomes unlawful if thought to include excessive speculation or is similar to gambling. To maximize the chances of profiting, investors employ a range of tactics to forecast market movement. They observe how the value of various currencies fluctuates without really owning, purchasing, or trading the currency they are speculating on. This raises concerns about whether trading in the foreign exchange market is legal or not.
In reality, the majority of traders are gambling rather than trading. You are gambling if you place trades before determining whether your approach or strategy is lucrative or if you risk real money before determining whether you are a consistently profitable trader. A trader is not gambling because they are aware that, despite occasional setbacks, they will ultimately turn a profit. As long as Muslim traders do not gamble in the process of trading, their activities are within religious guidelines.
Ethical Business Conduct
Islamic finance promotes transactions that are both financially beneficial and have a positive social impact, stressing honest and ethical business practices. If a trader engaged in dishonest or unethical tactics when trading, then they are in violation of Islamic principles. Making money through trading is acceptable in Islam as long as it is done in conformity with Islamic law. Interest charging, referred to as usury, or riba, is exploitative and unfair according to Islamic laws. Muslim traders must conduct themselves ethically, otherwise, their activities would be considered Haram.
What is an Islamic account?
These days, a lot of brokers provide accounts for Islamic forex traders. An Islamic account is a swap-free account that doesn’t charge Muslim traders any overnight fees or swaps. Additionally, they guarantee that financial transactions are completed as quickly as possible. These accounts are made for Muslim investors who want to trade currencies without breaking Islamic laws against interest and excessive uncertainty. An Islamic account also permits keeping positions open for an unlimited period of time, which is consistent with the Islamic concept of avoiding unnecessary uncertainty.
Closing Remarks
Given the factors discussed, some academics and professionals in the Islamic financial sector think that certain types of Forex trading can be regarded as halal if they follow Islamic norms. For instance, some contend that spot Forex trading that doesn’t involve overnight positions (swaps) may be more consistent with Islamic values. For the most part, it seems that forex trading is Halal as long as a Muslim trader uses an Islamic account.
It’s crucial to remember that there isn’t a single, widely accepted position on this matter, and interpretations can differ. Individuals interested in Forex trading in Nigeria should consult certified Islamic scholars or financial specialists who are knowledgeable about both Forex trading practices and Islamic finance principles in order to make an informed conclusion. They can offer advice based on your unique circumstances and trading methods to establish whether a given Forex trading strategy is permitted or prohibited by Islamic law.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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