ABUJA, Nigeria has officially been removed from the Financial Action Task Force’s (FATF) grey list, marking a significant milestone in the country’s long-running effort to strengthen its anti-money laundering and counterterrorism financing systems, authorities announced Saturday.
The Paris-based FATF, which monitors global standards for combating illicit financial flows, confirmed the decision after its October plenary meeting, citing Nigeria’s “substantial progress” in addressing deficiencies identified in its 2021 evaluation.
The exit effectively lifts years of heightened scrutiny that had deterred foreign investment, complicated cross-border banking, and hurt Nigeria’s financial reputation among international partners. Economists and diplomats hailed the move as a crucial step toward restoring investor confidence in Africa’s largest economy.
President Bola Tinubu praised the development, calling it “a vindication of Nigeria’s commitment to transparency, accountability, and global cooperation.” In a statement issued by the presidency, Tinubu said his administration would “consolidate on these gains to ensure that our financial institutions remain models of integrity in Africa.”
The FATF had placed Nigeria on its grey list in 2021, citing weak oversight of nonbank financial sectors, poor enforcement of existing anti-laundering laws, and limited interagency coordination. That classification placed the country under increased monitoring, alongside jurisdictions such as South Africa and the Philippines.
Nigeria’s removal follows two years of reforms spearheaded by the Nigerian Financial Intelligence Unit (NFIU), the Central Bank, and the Economic and Financial Crimes Commission (EFCC). These included the tightening of customer due diligence rules, enhanced reporting requirements for politically exposed persons, and the prosecution of high-profile financial crimes.
“The FATF’s decision reflects Nigeria’s dedication to strengthening its compliance framework,” said NFIU Director Modibbo Tukur. “This outcome demonstrates that consistent policy direction, institutional collaboration, and international engagement can yield measurable results.”
Experts say the delisting will ease restrictions for Nigerian banks seeking correspondent relationships with global financial institutions, many of which had scaled back partnerships due to regulatory risks. “This is a reputational win,” said Moyo Ayode, an economist at the Lagos Business School. “It signals that Nigeria is serious about cleaning up its financial system, and it opens the door to new inflows of foreign capital.”
The United States and European Union both welcomed the FATF’s announcement, describing Nigeria’s reforms as “significant progress” toward aligning with global standards. In a joint statement, the EU delegation in Abuja said the decision “reinforces confidence in Nigeria’s financial institutions and supports regional stability.”
Still, watchdog groups warned that challenges remain. Transparency International noted that while technical compliance has improved, “political will to prosecute corruption cases consistently remains fragile.” The group urged the Nigerian government to maintain vigilance and ensure reforms are not reversed ahead of the 2026 FATF review.
The EFCC said it would continue to pursue financial crimes “without fear or favor,” emphasizing that the delisting should not be seen as an invitation to relax oversight. “We view this not as an endpoint but as a renewed commitment to zero tolerance for illicit finance,” said EFCC Chairman Ola Olukoyede.
For Nigeria, the delisting represents more than a regulatory achievement — it is a diplomatic victory and a potential catalyst for economic recovery. “It’s a major signal to the world that Nigeria is turning a page,” said World Bank country director Shubham Chaudhuri. “Sustaining this progress will be vital to ensuring long-term credibility and economic resilience.”
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