E-Financial
FXTM: Why Education is Essential in Nigerian Fx Space
Nigeria has entered its worst recession in over 29 years. According to the Nigeria’s National Bureau of Statistics’ (NBS) GDP report, the economy contracted by 2.06 percent in the 2nd quarter of 2016. This translates into its lowest growth rate in three decades.
While economic woes are affecting the outlook of the country, individuals are trying to insulate themselves from the effects of high interest rates, unemployment and an inflation rate of over 18%. Saving in this environment can be extremely challenging, even Nigerians who are able to save, are not getting traction.
A lack of savings capital is not just a Nigerian issue however; a report issued by the OECD last year, revealed that there is a global pension crisis. It states that people retiring today can expect half the income of those who became pensioners at the start of the millennium.
A person buying an annuity today, who saved 10 percent of their income into a pension for 40 years, will receive just over half the earnings of someone who saved the same amount but retired 15 years ago. Consequently, it can come as no surprise that an increasing number of Nigerians are looking at alternatives to build up their wealth and Forex trading has become an interesting and accessible option.
The appeal of Forex trading, especially if you live in a country that is hamstrung by inflation and economic uncertainty, is that it offers investment opportunities in foreign instruments that deliver real returns in strong markets. In addition to Forex trading, products such as CFDs also offer the trader benefits because they can capitalise on opportunities regardless of whether the market is moving up or down given that they take the correct side of the trade.
A CFD is a “Contract for Difference”, it is a contract to exchange the difference in value of a financial instrument (the underlying market) between the time at which the contract is opened and the time it is closed. Traders also don’t need to own the underlying asset, meaning they can make investments with significantly lower capital commitments.
At first glance, Nigeria would not be your usual suspect if you had to speculate which nation would embrace Forex trading, but if you dig deeper, it makes perfect sense.
Nigeria has been under the spotlight for some time as the economy has experienced some major disruptions. Notably, taking the title of Africa’s largest economy away from South Africa and enduring the consequences of unpegging the Naira from the USD in 2016, as well as dealing with a massive debt burden.
From my experience, when teaching students how to trade the financial markets throughout different regions, I am often asked about global events and how they are impacting the markets.
The media landscape is becoming more sophisticated and access to news via multiple devices is sensitising Nigerians to global issues and how they affect their economy. Increased coverage of global financial developments and awareness around market volatility, has helped to focus attention towards market movements and increased Nigerians’ desire to learn more about the financial markets.
Infrastructure has also played a pivotal role in the uptake of Forex trading, as Nigeria has made significant improvements in their internet connectivity and especially, mobile services. Statista, a Data and Statistics Portal estimated that Nigeria is likely to have about 15.5 million new smartphone users in 2017 and mobile internet has reached over 90 million users.
This means that there are more people taking advantage of mobile solutions and the huge array of applications that have been developed for smartphones.
The rise of mobile trading apps and on-the-go solutions, have created the prime conditions for online trading – a trend we have seen confirmed in the extremely high demand for our ForexTime Trading App. An impressive one third of the downloads on active devices come from Nigeria.
While the ability to access a vibrant Forex trading market is good news for Nigerians, it comes with a caveat. Investing in Forex, or any other financial instrument for that matter, requires a degree of education.
Even investing in a basic bank product needs research because different savings products offer a variety of returns and flexibility.
As you move up the scale of investment products – the higher the returns, the higher the risks, so jumping into the Forex market “green” may have less than favourable results.
Forex trading is now available to, and being considered by, a much wider audience with more varied backgrounds. Potential investors may have no experience in finance or economics, so taking the time to learn about the technical and fundamental aspects of the trading environment, is crucial to the success of the investor.
FXTM is acutely aware of this fact and has invested heavily in online tutorials, workshops and videos to make sure investors enter the market with confidence.
While Nigerian clients have shown a strong appetite for Forex trading, they have also acknowledged the need for education, and this has been confirmed by the fact that the FXTM workshops have been particularly well attended.
We have also witnessed a strong interest in FXTM Invest- our investment and copy trading program. In fact, over one third of the users of FXTM Invest are Nigerian. This trend shows that people are interested in trading but don’t necessarily have the time necessary to trade effectively, so they prefer to invest instead.
This is a correlation that we are also spotting outside of Nigeria and I believe that there is still room for further growth in social trading on a global level. At present, clients from Nigeria account for 36% of our active investors and we saw a growth of 114% in registered accounts in 2016.
The most popular currency pairs traded by our Nigerian clients are EURUSD, GBPUSD, USDJPY, as well as Gold and not surprisingly Oil, which is Nigeria’s primary export. As a result of the strong growth in this African market, we have expanded our operations to South Africa and recently secured a license to operate from the Financial Services Board.
Like all investments, currency trading carries risks that have to be managed. As brokers, it is our responsibility to ensure our traders have access to all the tools and information that will help them safely navigate the markets.
Helping to build our traders’ skills in fundamental and technical analysis, and assisting them to get a solid understanding of the markets, ensures that investors will have rewarding trading careers.
As Nigeria makes its transition from a purely commodity-based to a more diversified economy, we see a bright future for currency derivatives and intend to continue investing and growing our presence in this country.
We strongly believe that our focus on education is the key to a sustainable and successful relationship with traders.
The House of Representatives has launched an investigation into 25 insurance companies over alleged financial infractions that have reportedly led to the loss of hundreds of billions of naira in government revenue.
Chairman of the House Sub-Committee on Capital Market and Institutions, Hon. Kwamoti Laori, made the disclosure on Monday during a meeting with representatives of the affected companies at the National Assembly Complex in Abuja.
Laori said the probe was prompted by petitions accusing the companies of violating statutory provisions in their operations, thereby shortchanging the federal government.
“This committee is saddled with the responsibility of addressing a petition based on infractions by these insurance companies regarding their operations and non-compliance with certain statutory provisions,” he said.
“These infractions have led to the federal government losing hundreds of billions of naira in revenue. That is why the companies were invited—to either confirm or refute the liabilities ascribed to them.”
According to the lawmaker, each of the 25 companies had been formally notified of their respective liabilities and summoned to explain their financial dealings.
“The essence of this engagement is to ensure that what is due to the federal government from these private entities is fully remitted,” Laori added.
He emphasized that it is within the constitutional mandate of the National Assembly to track government revenue and block leakages, particularly in sectors involving private sector collaboration.
The committee also frowned at some of the companies’ attempt to stall the investigation by resorting to legal action.
“Some of the companies have gone to court and served the House with court processes. It is now up to us and the House leadership to examine those court papers,” Laori said. “If the court action does not affect the core of our mandate, we will proceed. If it does, we’ll await the court’s decision.”
He criticized what he described as a strategy aimed at obstructing parliamentary oversight.
“Going to court appears to be a deliberate attempt to throw a spanner in the works of the National Assembly,” he stated.
Laori also expressed dissatisfaction with the failure of some company heads to appear in person, instead sending representatives who were unable to respond to critical questions.
“We have insisted that Chief Operating Officers (COOs) must appear in person. One of the COOs sent someone who couldn’t answer any of the allegations—this is unacceptable,” he said. “It is the same people that will later accuse the National Assembly of not doing its job.”
The committee chairman did not spare the industry’s regulator—the National Insurance Commission (NAICOM)—which he accused of negligence.
“NAICOM has a supervisory role, and if they were doing their job effectively, we wouldn’t be here conducting this investigation. They need to sit up,” Laori said.
Meanwhile, 17 of the companies currently in court sent a legal representative, Mr. Abimbola Kayode, to the hearing on Monday.
The naira closed the past week weaker than the previous one, as it depreciated by 0.14 per cent week-on-week to settle at 1,532.34/$ at the Nigerian Foreign Exchange Market.
This weakening came despite the naira rebounding to a four-month high on the first trading day to close at 1,518.88/$. After that, it weakened to 1,530.25/$, then lower to 1,533.11/$ before gaining some strength to close the week at 1,532.34/$ at the official market.
During the past week, the highest amount that the naira traded for was 1,538/$, and the lowest was 1,515/$ on the NFEM.
At the parallel market, the currency closed trading within the band of 1,535.00/$ and 1,544.00/$1.
Analysts have maintained that the intervention of the Central Bank of Nigeria and improvement in the foreign exchange liquidity were essential to stabilising the naira at the FX market.
Cowry Assets Management Limited, in its weekly market report, averred that the naira had recorded mixed trading across the markets as it appreciated slightly by 0.06 per cent week-on-week to close at 1,544.00/$1 at the parallel market while closing in the red zone at the official market.
“The divergent movements reflect ongoing supply-demand imbalances and the evolving FX liquidity landscape,” stated the analysts, who, however, maintained that the naira looks to record further gains as improved oil output and elevated prices drive higher dollar inflows, which could sustain the current pace of reserve accretion.
“The positive oil earnings outlook, combined with steady capital inflows, should offer continued support for the naira and enhance near-term FX market stability,” the report added.
Recent data from the Nigerian Upstream Petroleum Regulatory Commission shows that the average daily crude oil production (excluding condensates) rose by 3.6 per cent to 1.51 million barrels per day in June 2025 from 1.45 mbpd in May. This marks the first time in five months that Nigeria has met its OPEC production quota, reflecting improvements in operational efficiencies and security around key oil-producing assets.
AIICO Capital Limited, in its weekly report, noted that the CBN had intervened intermittently in the FX market in the past week.
It stated, “Dollar sales early and late in the week helped maintain relative stability. The naira closed at 1,532.34/$, down 13.6 bps w/w. Reserves rose by $422m to $37.85bn” as of Thursday from $37.43bn in the previous week.
It is expected that the naira will likely hold its current range amid better liquidity, while markets weigh potential FX impacts from the Monetary Policy Committee’s decision starting Monday (today).
Analysts are split on what the decision of the MPC should be regarding the benchmark. On one side, doves are calling for a modest rate cut, pointing to cooling inflation, a more stable naira, and signs of reform traction. On the other hand, hawks are warning that premature easing could undo all the gains of FX reforms and decelerating inflation, especially with food supply shocks and global risk still very much in the picture.
“For now, traders are positioning around the edges, but the real signal will come from the tone of the communique,” Comercio Partners asserted.
As part of its unwavering commitment to digitally transform Nigeria’s small and medium-scale enterprises (SMEs), leading financial institution Fidelity Bank is set to empower entrepreneurs across the country with cutting-edge digital tools designed to streamline operations, boost productivity, and drive sustainable growth.
Through the Fidelity SME Empowerment Program (FSEP), the bank will equip 100 growth-ready entrepreneurs with a comprehensive digital toolkit that includes: a POS desktop system, access to ERPRev software, receipt printer & barcode scanner; inventory & management tools. business training and support; free fidelity pos with branding and onboarding assistance
Interested entrepreneurs can apply via: https://bit.ly/SMEEmpowermentprogram2025
Commenting on the initiative, Osita Ede, Divisional Head, Product Development at Fidelity Bank Plc, stated:
“Studies have shown the exponential growth SMEs can achieve through digitalisation. As Nigeria’s leading SME partner, we are walking the talk by providing free digital toolkits to our customers. This aligns with our mission to help individuals grow, businesses thrive, and economies prosper.”
Fidelity Bank’s dedication to SME development is reflected in its broader vision of fostering economic inclusivity and building a resilient business ecosystem nationwide.
As part of its World SME Day 2025 celebrations, the bank granted free access to its renowned SME Hub in Gbagada, Lagos, and hosted a special mentoring session for female entrepreneurs led by CEO Dr. Nneka Onyeali-Ikpe. These efforts complement its regular masterclasses and ongoing support for small businesses and creatives.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
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