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
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
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