By Sophie Lindqvist

Nigeria’s SEC is reviewing draft rules for online forex and contracts for difference (CFD) trading, built around five priorities, while warning that easy platform access does not establish investment safety.

The Securities and Exchange Commission (SEC) said the draft regulations remain under review after public consultation and stakeholder submissions. It delivered its position in an opening keynote at the second Africa Forex Trading Expo (AFTE), held at the Balmoral Convention Centre, Victoria Island, Lagos.

The rules and their legal basis

Section 3(3)(o) of the Investments and Securities Act 2025 empowers the SEC to register and regulate online forex activities, platforms and intermediaries. The draft would classify operators, specify their permitted activities and customer obligations, and cover cross-border arrangements and offshore operators targeting Nigerian residents, subject to applicable laws.

Different SEC departments are reviewing the responses submitted during the public-comment period. The announcement gave no final-rule timetable, implementation thresholds or transition period, leaving several practical questions unresolved.

The SEC said: “Accessibility should not be confused with safety, and technological sophistication should not be mistaken for investment quality.” It also said that opening an account and executing trades does not mean investors understand leverage, meaning borrowed trading exposure, transaction costs or the risk of losing their entire investment.

Five priorities underpin the proposed regulatory approach:

• Establish a clear framework for market participation.
• Require operators to demonstrate fitness, competence and financial soundness.
• Promote transparency and fair treatment of clients.
• Protect client funds and provide effective complaint-handling mechanisms.
• Strengthen supervision and enforcement.

Registration alone would not end scrutiny. The SEC said registered operators must remain subject to continuous regulatory supervision.

What does this change for traders and operators?

For traders, the immediate effect is guidance, not a new operating standard. The SEC advised verifying platforms’ regulatory status through official channels, avoiding unsolicited offers and treating guaranteed profits or unusually high returns with little or no risk as warning signs. Such checks identify regulatory status; they do not establish safety.

For operators, the draft points to continuing duties rather than a one-off registration exercise. The SEC called for compliance within business models, investor interests at the centre of product design and distribution, and investment in cybersecurity and market-integrity systems. It also urged closer regulatory cooperation and local expertise and institutions across Africa.

Credibility behind the growth claims

Zack Kiratu, director of organiser Azelia Expo Limited, said growth must bring greater responsibility. He identified financial literacy gaps, unrealistic expectations, inadequate risk management, questionable marketing practices and consumer protection as problems requiring attention.

“A bigger market is important, but a more credible market is even more important,” Kiratu said. He named innovation, trust and opportunity as the three elements needed to shape Africa’s digital financial markets. The continent, he argued, should move beyond consuming financial products to participating in their design and development.

“Africa’s digital finance revolution is not something we should merely observe. It is something we must actively participate in and help shape,” he added. The expo carries the theme “Africa’s Digital Finance Revolution: Trading, Technology and Opportunity.”

FundingPips, the presenting sponsor for the opening keynote, said its mission was to bridge the gap between trading talent and access to capital. The proprietary trading firm disclosed more than $330 million in payouts, more than three million traders served and a presence in more than 195 countries. It also said five Nigerian traders had received nearly half a million dollars.

Those figures came from FundingPips, and the announcement supplied no independent verification. The company nevertheless urged traders to prioritise survival and consistency rather than trying to win every trade. “Hustle gets you into the game. Discipline keeps you in the game,” its presentation stated.

Risk management and the event programme

Workshops and masterclasses alongside the main programme focused on trading discipline, strategy development and risk management. Pius Ogbu, Exinity (FXTM) Client Education Specialist, used his “From Strategy to Execution” masterclass to distinguish a trading plan from a trading strategy. He said traders should define entry points, stop-loss levels, targets and trade-management rules before executing transactions.

Citadel Egigba, founder of Spark FX Academy, led a workshop titled “Beyond the Candlesticks.” Participants were introduced to market structure, liquidity and technical points of interest through practical chart analysis.

The expo continues on Thursday, November 12. Scheduled discussions address Nigeria’s position as Africa’s fastest-growing digital trading economy, women shaping the continent’s financial future and the challenges confronting forex traders. Additional sessions will focus on risk management and strategy validation.

The closing ceremony will include competition awards, recognition for sponsors and organisers, and the announcement of AFTE Kenya 2027. Organisers expect more than 5,000 participants, over 50 speakers and more than 60 exhibitors from more than 20 countries. Sponsors include FundingPips, Headway and FXTM. Those attendance figures are forecasts, not confirmed turnout.