The Central Bank of Nigeria (CBN) has described the country’s removal from the Financial Action Task Force grey list as a global vote of confidence in Nigeria’s ongoing financial reforms and anti-money laundering framework.
In a statement by its Acting Director of Corporate Communications, Hakama Sidi Ali, on Saturday, the apex bank said the FATF’s decision followed a successful on-site evaluation that confirmed Nigeria’s ‘significant improvements’ in its regulatory and enforcement architecture, particularly in combating money laundering, terrorist financing, and proliferation financing.
The FATF, the world’s leading watchdog on illicit financial flows, announced on Friday that Nigeria, alongside South Africa, Mozambique, and Burkina Faso, had been removed from its list of jurisdictions under increased monitoring, commonly called the ‘grey list’.
According to the CBN, the delisting marks a major milestone in Nigeria’s two-year reform programme coordinated by the Federal Government and implemented by key institutions such as the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission.
The bank said its role in the process involved enhancing supervision, transparency, and governance in the financial sector through measures such as strengthened oversight of banks and fintech operators, updated anti-money laundering and counter-terrorist financing regulations, and improved compliance monitoring across remittance and foreign exchange platforms.
The statement read, ‘The FATF’s decision follows a two-year reform programme coordinated by the Federal Government of Nigeria, involving multiple agencies including the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission.
‘The CBN’s contribution centred on enhancing supervision, governance, and transparency across the financial system. Key reforms assessed by the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa regional assessment body, included: Strengthened oversight of financial institutions through updated AML/CFT regulations, risk-based supervision, and fit-and-proper assessments, expansion of compliance reporting and monitoring across remittance channels, bureaux de change, and fintech platforms to improve traceability and transparency’.
Other reforms included the introduction of the Foreign Exchange Code and the Electronic Foreign Exchange Matching System, both designed to deepen market transparency and reduce manipulation risks in the foreign exchange market.
‘Enhanced inter-agency data-sharing and enforcement coordination between the CBN, NFIU, EFCC, and law enforcement bodies. Implementation of market governance tools, including the Foreign Exchange Code and Electronic Foreign Exchange Matching System.
‘Together, these measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system.
‘These measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system, the CBN noted.
The statement explained that Nigeria’s exit from the FATF grey list could unlock several economic benefits.
By restoring confidence in the country’s financial system, businesses are expected to face fewer restrictions in international transactions, while banks may enjoy improved correspondent relationships with global partners.
The CBN also projected that the move would reduce compliance costs for Nigerian firms, improve access to international finance, and make cross-border payments faster and cheaper. In the long run, this is expected to support trade, boost remittance inflows, and enhance foreign exchange stability.
Commenting on the announcement, CBN Governor Olayemi Cardoso said the FATF’s decision affirmed Nigeria’s reform direction and the ‘growing integrity’, of its financial system.
‘The FATF’s decision to remove Nigeria from the grey list is a strong affirmation of our reform trajectory and the growing integrity of our financial system.
‘It reflects coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms. Our priority now is to consolidate these gains and ensure that compliance, innovation, and trust continue to advance hand in hand’, Cardoso said.
Nigeria was placed on the FATF grey list in February 2021 after the global body identified strategic deficiencies in the country’s framework for combating money laundering and terrorist financing. The listing increased compliance scrutiny for Nigerian financial institutions and international transactions, often raising costs for trade and investment.
Since then, the Federal Government has implemented a series of corrective actions, including the strengthening of the NFIU’s autonomy, revision of AML/CFT laws, and greater coordination among regulatory and law enforcement agencies.
Nigeria’s delisting aligns with other recent international assessments that have improved the country’s economic outlook. Both Moody’s and Fitch Ratings recently upgraded Nigeria’s outlook to positive, citing stronger external balances and credible fiscal and monetary policies, while the IMF’s 2025 Article IV Consultation highlighted gains in transparency and reserve adequacy.
With this milestone, Nigeria joins other African economies demonstrating progress in meeting international financial integrity standards, a move observers say could help attract new investment inflows and strengthen the naira’s credibility in global markets.
