Officials hail Nigeria's exit from FATF grey list
Nigerian officials have hailed the country’s landmark victory in global financial governance, with the Financial Action Task Force (FATF) officially removing the country from its list of jurisdictions under increased monitoring, commonly known as the grey list.
This highly anticipated decision, announced following the FATF’s October plenary in Paris, signals restored international trust in the integrity of Nigeria's financial system.
The news was greeted with enthusiasm by key federal agencies, reflecting the success of two years of coordinated, high-level reforms.
The Central Bank of Nigeria (CBN) described the removal as a major milestone. Mrs. Hakama Sidi-Ali, the CBN's Acting Director of Corporate Communications, confirmed the development, noting that the FATF's decision followed a comprehensive on-site evaluation of reforms implemented to strengthen the country’s anti-money laundering (AML), counter-terrorist financing (CFT), and anti-proliferation frameworks.
Nigeria was first placed on the grey list in February 2023 after the international watchdog identified gaps in its systems. Following the intense reform process jointly driven by the CBN, the Nigerian Financial Intelligence Unit (NFIU), the Federal Ministry of Justice, and the Economic and Financial Crimes Commission (EFCC), the FATF and its regional partner, GIABA, acknowledged the significant progress.
The CBN’s specific role focused on enhancing supervision and governance across the financial sector. This involved updating AML/CFT regulations, implementing risk-based supervision, conducting fit-and-proper assessments, and expanding compliance monitoring across critical channels, including remittance services, bureaux de change, and fintech platforms.
The Apex Bank also cited improved inter-agency coordination and the introduction of new market governance tools, such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS), as crucial in materially strengthening compliance with global standards.
Sidi-Ali emphasized that the exit from the grey list promises tangible economic benefits for the nation. These gains will manifest in reduced compliance costs, greater access to global finance, faster cross-border transactions, smoother trade settlements, and quicker remittance inflows all factors expected to boost business confidence, enhance livelihoods, and deepen financial inclusion.
This FATF endorsement, she noted, aligns with recent credit rating upgrades from Moody’s and Fitch, which have improved Nigeria's outlook based on stronger external balances and renewed policy discipline.
In the same vein, the Nigerian Financial Intelligence Unit (NFIU) echoed the sentiment, with Director/CEO Hafsat Bakari describing the FATF decision as “a true test of Nigeria’s resilience, coordination, and unwavering commitment to reform.”
She confirmed the success in implementing the comprehensive 19-point action plan agreed upon with the FATF and GIABA.
According to Bakari, the far-reaching reforms included enacting critical legislation such as the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022. The operationalization of the Beneficial Ownership Register was also key to enhancing corporate transparency, alongside stronger supervision of Designated Non-Financial Businesses and Professions (DNFBPs) and improved international cooperation on cross-border financial intelligence.
The high-powered Nigerian delegation to the FATF plenary in Paris included the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, and the Minister of Interior.
Speaking on behalf of the delegation, Wale Edun stated that Nigeria’s ambition extended beyond simply exiting the grey list.
He affirmed that the focus has been on driving reforms, enacting legislative enhancements, and strengthening institutions to ensure Nigeria effectively counters money laundering and terrorist financing. "For us, the action plan is not the ceiling, but the floor of our aspirations," Edun said.
Attorney-General Lateef Fagbemi highlighted an additional honour: "Nigeria's invitation to join the FATF Guest Jurisdictions Initiative, which will allow the country to participate in FATF meetings under its own flag over the next year and contribute to shaping global policy discussions."
Nigeria’s achievement was noted alongside similar progress by Burkina Faso, Mozambique, and South Africa, signaling a broader regional commitment to financial integrity. With sustained vigilance and coordination, the NFIU is confident that Nigeria will not only preserve its standing but also play a leading role in global stability.