Nigeria has officially been removed from the Financial Action Task Force (FATF) greylist, a major step that signals renewed international confidence in the country’s financial integrity and its fight against illicit money flows.
The announcement came on Friday after the FATF’s plenary meeting in Paris, marking the end of Nigeria’s 18-month stay under increased monitoring for deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CTF) systems.
The decision also saw South Africa, Mozambique, and Burkina Faso taken off the list, following similar progress in strengthening financial regulations across the continent.
According to FATF, Nigeria earned its removal after demonstrating stronger coordination between agencies, tightening oversight of financial institutions, and improving the tracing of suspicious transactions.
“Nigeria has made tangible, measurable progress in building safeguards against illicit financial flows,” the watchdog said in a statement.
Nigeria’s delegation at the plenary was led by Attorney-General and Minister of Justice Lateef Fagbemi, alongside Minister of Finance Wale Edun, Minister of Interior Olubunmi Tunji-Ojo, and Nigerian Financial Intelligence Unit (NFIU) Director Hafsat Bakari.
The team’s presence underscored the government’s commitment to meeting FATF’s international compliance standards.
In a post-meeting statement, the NFIU disclosed that Nigeria successfully fulfilled a 19-point action plan jointly developed with FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).
The agency noted that the achievement followed two years of sustained reform and inter-agency collaboration.
Reacting to the development, President Bola Tinubu hailed the delisting as a milestone in his administration’s ongoing efforts to strengthen Nigeria’s financial systems.
“This marks the beginning of a new chapter in our financial reform agenda,” Tinubu said through his media adviser, Bayo Onanuga.
“Nigeria will continue to institutionalise transparency, deepen cooperation among financial bodies, and maintain a system the world can trust.”
Analysts have described the move as a significant relief for Nigeria’s economy, especially for its banking and investment sectors, which often face increased scrutiny when a country is greylisted.
“This decision will restore investor confidence and improve Nigeria’s global standing in financial transactions,” said an economist based in Abuja.
The FATF greylist identifies nations with weaknesses in anti-money laundering and counter-terrorism financing frameworks.
Nigeria was added to the list in 2023 following concerns about insufficient inter-agency coordination and enforcement gaps.
With the country now off the list, financial experts believe Nigeria is poised to attract more foreign investment and strengthen its ties with international partners.
“It’s a win not just for the government but for every Nigerian business seeking legitimacy in the global marketplace,” another financial expert noted.
The FATF’s decision reinforces Nigeria’s progress in building a transparent and accountable financial ecosystem, one that aligns with global standards and enhances its economic credibility on the international stage.