ABUJA Nigeria has been removed from the Financial Action Task Force’s (FATF) global “grey list,” marking a major milestone in its fight against money laundering and terrorist financing after nearly two years under increased international scrutiny.
The decision, announced Friday at the FATF plenary session in Paris, reflects Nigeria’s full implementation of a 19-point action plan developed with regional and international partners. The reforms included legislative overhauls, new compliance structures, and stronger inter-agency coordination.
Nigeria was first placed on the grey list in February 2023, a move that complicated foreign transactions and discouraged global investors wary of financial-crime risks. The country’s delisting signals a turnaround in regulatory credibility, officials said.
President Bola Tinubu hailed the announcement as “a strategic victory” for Nigeria’s economy, saying it demonstrated his administration’s commitment to fiscal discipline and global financial standards. “This achievement reinforces investor trust and strengthens our role as a responsible partner in international finance,” Tinubu said in a statement.
Reforms credited with the delisting include two key laws the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022 along with a new beneficial-ownership register that increases transparency of corporate entities. The government also expanded oversight of non-financial institutions such as real estate and legal services.
Analysts say the development is expected to ease cross-border transactions, reduce compliance costs for Nigerian banks, and attract capital inflows into Africa’s largest economy. “This is a credibility dividend for Nigeria,” said Lagos-based economist Kemi Awoniyi. “It sends a signal that reforms are real, not rhetorical.”
Still, the FATF cautioned that Nigeria will undergo a 12-month post-observation review to ensure enforcement of anti-money-laundering and counter-terrorism-financing measures remains robust. The group urged continued vigilance to prevent backsliding.
Nigeria’s removal coincided with similar delistings of South Africa, Mozambique and Burkina Faso a broader shift reflecting progress in African financial compliance. “These exits show that African governments are taking ownership of their reform agendas,” FATF President Elisa de Anda Madrazo said in Paris.
International reactions were swift. British High Commissioner to Nigeria Richard Montgomery called the move “a major boost for Nigeria’s financial credibility,” while several non-governmental organizations said the reforms must translate into real-world accountability. “The test will be in enforcement, not in celebration,” said the Centre for Transparency Advocacy in Abuja.
For Nigeria’s banking sector, the delisting could help restore lost correspondent-banking relationships and ease pressure on dollar liquidity. Market analysts expect modest appreciation in the naira and tightening of sovereign bond spreads as risk perceptions ease.
However, experts warned against complacency. “Exiting the grey list is not an endpoint,” said anti-corruption advocate Aisha Yesufu. “The real challenge is ensuring these institutions remain independent and effective even when political winds change.”
As Nigeria steps back into global financial good standing, its next task will be ensuring reforms outlast the spotlight building a financial system that is transparent, resilient, and trusted both at home and abroad.
