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 Aduragbemi Omiyale
Barring any last-minute changes, the 50th Annual General Meeting (AGM) of Champion Breweries Plc will take place on Thursday, May 21, 2026, at the Oriental Hotel, Victoria Island, Lagos, at 11:00 am.
At the yearly shareholders’ gathering, some of the key statutory and governance matters to be considered will include the Audited Financial Statements for the year ended December 31, 2025, alongside the Reports of the Directors, Auditors, and the Audit Committee.
Other agenda items are the declaration of dividends, election and re-election of Directors, authorisation for Directors to determine the remuneration of the Auditors, and election/re-election of shareholders’ representatives to the Audit Committee.
In line with its commitment to transparency, accountability, and shareholder engagement, the AGM will be held physically while also being accessible to stakeholders via the company’s official website: www.championbreweries.com.
This year’s AGM comes at a defining moment in the organisation’s corporate journey, following a transformative year marked by strategic expansion initiatives, including the acquisition of Bullet Energy Drink and its successful engagement with the capital market to raise growth capital.
These developments reinforce Champion Breweries Plc’s commitment to strengthening its competitive positioning, expanding its portfolio, and delivering long-term shareholder value.
The brewer has strengthened its transition into a group structure with the acquisition of an 80 per cent stake in enJOYbev B.V., a strategic move already delivering early earnings contribution and validating its international expansion drive.
The subsidiary’s results are now being consolidated into the Group accounts for the first time, with enJOYbev B.V. already contributing positively to earnings through operating profitability within the reporting period, an early validation of the group’s expansion strategy.
“This AGM reflects a defining chapter in our journey as a Company. The acquisition of Bullet, our successful capital market engagement, and the integration of enJOYbev B.V. into our group structure all signal a deliberate strategy for sustainable growth and diversification.
“These milestones position Champion Breweries Plc for stronger performance, broader market reach, and enhanced shareholder value. We remain committed to disciplined execution, operational excellence, and the highest standards of corporate governance,” the chairman of Champion Breweries, Mr Imo Abasi Jacob, said.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has unveiled a unified Taxpayer Identification (Tax ID) system for all taxable persons across the country as part of efforts to strengthen tax administration and improve transparency.
The agency announced the development in a public notice issued jointly with the Joint Revenue Board (JRB) on Monday.
According to the notice, the initiative is backed by Sections 6, 7, and 8 of the Nigeria Tax Administration Act, 2025, which mandate every taxable person in Nigeria to obtain a Tax ID, in a wider move to expand the country’s tax base.
The NRS said the new framework is designed to create a centralised and harmonised taxpayer database that would enhance interactions between taxpayers and revenue authorities at both federal and sub-national levels.
“The Tax ID will serve as a single, unified identity for all taxpayers, enabling seamless interaction with tax authorities at both federal and sub-national levels. It is designed to consolidate taxpayer records, eliminate duplication, and ensure more efficient management of tax-related information,” the agency stated.
The revenue agency explained that the new system would simplify tax compliance procedures, including taxpayer registration, filing of returns, and payment processes.
According to the NRS, the framework is also expected to improve accountability and reduce leakages in tax collection by creating better visibility and tracking of taxpayer information nationwide.
“The initiative will simplify tax compliance processes, including registration, tax filing, and payment procedures. The system will improve transparency by enabling better visibility and tracking of taxpayer records while reducing leakages and improving accountability in tax collection. The framework will also harmonise taxpayer information across all levels of government,” the notice added.
The agency further disclosed that the new Tax ID system would replace the existing Tax Identification Number (TIN) Validation API currently used by Ministries, Departments and Agencies (MDAs), financial institutions, and other organisations for taxpayer verification.
By Adedapo Adesanya
Three bellwether stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.31 per cent on Monday, May 18.
This brought the NASD Unlisted Security Index (NSI) by 54.71 points to 4,133.70 points from 4,188.41 points, and shrank the market capitalisation by N32.73 billion to N2.473 trillion from N2.506 trillion.
Yesterday, FrieslandCampina Wamco Plc contracted by N12.45 to sell at N146.55 per share compared with last Friday’s closing price of N159.00 per share, Central Securities and Clearing System (CSCS) Plc declined by N2.34 to N70.00 per unit from N72.34 per unit, and NASD Plc lost 50 Kobo to trade at N34.50 per share versus N35.00 per share.
The trio overpowered the N5.56 gained Newrest Asl Plc. This stock ended the trading session at N61.15 per unit, in contrast to the previous session’s N55.59 per unit.
During the trading day, the volume of securities traded by investors slid by 56.1 per cent to 514,142 units from 1.2 million units, and the value of securities dropped 29.8 per cent to close at N17.4 million versus N29.8 million, while the number of deals jumped 12.5 per cent to 27 deals from 24 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units traded for N1.9 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
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