The announcement on 24 October 2025 regarding Nigeria’s removal from the Financial Action Task Force (FATF) list of jurisdictions under increased monitoring (commonly referred to as the Grey List) represents a significant milestone in enhancing the integrity of the nation’s financial system and reinforcing its international reputation.
On 24 February 2023, Nigeria was placed on the FATF Grey List due to significant gaps identified in its ability to effectively combat illicit financial flows as a result of the strategic identified shortcomings in the nation’s Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of weapons of mass destruction (AML/CFT/CPF) framework. Some of these gaps included weak investigation and prosecution of AML/CFT/CPF cases; inadequate beneficial ownership transparency, inadequate application of the risk-based approach to supervising financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs); insufficient financial intelligence information sharing locally and with international partners; etc.
Placement on the Grey List signalled to global banks and investors that Nigeria presented elevated compliance and reputational risks. This led to increased due diligence and scrutiny by correspondent bank and a more cautious posture by foreign investors.
Nigeria’s delisting signifies that Nigeria has substantially addressed the identified shortcomings and demonstrated sufficient commitment to global financial security standards. The delisting followed extensive legislative, institutional, and operational reforms aimed at fulfilling FATF’s action plan. Key reforms implemented include strengthening the AML/CFT legal framework; improving beneficial ownership registers; strengthening risk-based supervision by regulators (Central Bank of Nigeria, Securities and Exchange Commission, etc.) over high-risk sectors; establishing effective inter-agency collaboration and data sharing; etc.
Nigeria’s exit from the Grey List is expected to yield tangible benefits, including improved global perception, restoration of investor confidence, and reduced transactional frictions in cross-border financial operations. FATF’s public acknowledgment of Nigeria’s progress affirms that the jurisdiction now demonstrates improved oversight and alignment with international financial integrity benchmarks.
While we celebrate this important milestone, sustained vigilance remains essential. To preserve the gains achieved and prevent regression, continuous enforcement, inter-agency collaboration, and transparency in the implementation of AML/CFT/CPF measures will be critical.