Nigeria has officially exited the “grey list” of the Financial Action Task Force (FATF), the global watchdog on money-laundering and terrorist financing. The decision at the October 2025 FATF plenary in Paris recognized Nigeria’s implementation of a 19-point action plan to strengthen its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework.
The removal marks a significant milestone for Nigeria’s financial sector and the economy as a whole. Nigeria was placed on the grey list in February 2023 due to concerns about weak enforcement of financial crime laws, poor inter-agency coordination, and opaque corporate ownership structures. President Bola Tinubu described the delisting as “a strategic victory for our economy and a renewed vote of confidence in Nigeria’s financial governance”.
Behind the headline lie extensive reforms led by the government and key agencies. The Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN), and the Ministries of Finance, Justice, and Interior collaborated to meet FATF expectations. Some of the core measures that FATF cited include the enactment and enforcement of the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022, the operationalization of the Beneficial Ownership Register to improve corporate transparency, and enhanced supervision of designated non-financial businesses and professions.
Nigeria also strengthened its financial intelligence and law enforcement coordination. The NFIU reported greater capacity in detecting, investigating, and prosecuting cases of financial crime and deeper cross-border intelligence sharing. The eradication of institutional bottlenecks in reporting suspicious transactions and improved oversight of correspondent banking relationships were also cited.
The exit from the grey list carries immediate implications for Nigeria’s economy. The removal will ease friction in cross-border payments, reduce capital-flow constraints, improve correspondent banking relationships, and bolster foreign investment sentiment. Credible reports indicate Nigeria’s currency, the naira, showed signs of strength in both the official and parallel markets following the announcement.
Despite the positive turn, the achievement is not an endpoint. Maintaining standards will require sustained enforcement, institutional vigilance, and structural reforms. Nigeria must now ensure that its legislative framework is fully implemented, cases of financial crime are prosecuted to conclusion, and regulatory bodies remain independent and robust.
The road to delisting was paved by several years of policy shift and institutional restructuring. After Nigeria’s grey-listing in 2023, the government treated the designation as a signal for urgent action rather than a setback. Agencies engaged in intensive consultations, capacity building, and regulatory overhaul. The NFIU and EFCC increased investigations of money-laundering cases, while CBN improved transparency in banking operations and encouraged banks to implement risk-based anti-money-laundering systems.
Among the reforms, the Beneficial Ownership Register stands out. It requires companies and financial institutions to identify and report their ultimate beneficial owners, thereby reducing anonymous corporate structures that facilitate illicit flows. This was a major deficiency flagged by the FATF. The full rollout of this register was an important condition for delisting.
The reinforcement of non-financial business supervision also featured prominently. Real estate, legal services, casinos, and other gatekeepers of high-value transactions were brought under stricter oversight, aimed at preventing abuse of the financial system by launderers. These steps signaled a shift in regulatory culture from reactive to preventative.
For the government, the delisting offers both vindication and challenge. It validates the direction of reform under the Tinubu administration and strengthens Nigeria’s credentials as a financial hub in Africa. But it also raises expectations. The markets, private-sector stakeholders, and international partners will now expect consistent compliance, visible prosecutions, and regular reporting on progress. Any regression could undermine the achievement.
Industry stakeholders responded positively. Bankers, fintech executives, and multinational companies described the exit from the grey list as a relief and a signal to re-engage with Nigeria. They indicated that correspondent banking relationships may be restored and that transaction costs for international flows may decline. Some suggested that the increased confidence could translate into higher foreign direct investment and improved access to global financial markets.
In recent years, Nigeria’s economic agenda has emphasized financial sector reform, attracting foreign investment, diversifying away from oil, and improving transparency. The delisting aligns with these goals. It positions the country to tap more deeply into international capital flows, benefit from improved cost of financing, and embed itself in global trade and financial systems.
Nevertheless, the delisting also raises tougher questions about sustainability. Observers point out that regulatory reforms must now move beyond law-making into effective implementation. Nigeria’s law-enforcement agencies must show the traceability of investigations, the prosecution of high-profile money-laundering cases, and the consistent use of the Beneficial Ownership Register. Institutional coordination must become the norm, not the exception.
For the average Nigerian, the benefits may not be immediately visible, but the ripple effects matter. Improved global financial integration can reduce remittance costs, lower foreign-transaction fees, stabilize the naira, and enhance trade flows. Over time, increased investor confidence can translate to job creation, upgraded infrastructure, and better access to global financial services.
In sum, Nigeria’s exit from the FATF grey list is a major step forward for the country’s finance sector and its image abroad. It signals that the hard work of government agencies and reforms has borne fruit. The next phase, however, is arguably more important: converting the delisting into sustained progress in financial integrity, deepening market confidence, and delivering tangible benefits to the Nigerian economy.
Samuel Aina