A new dawn for financial integrity, By Oyetola Muyiwa Atoyebi
Nigeria’s removal from the FATF Grey List is more than a technical achievement; it is a national statement. It reflects the country’s ability to align with international best practices, rebuild global confidence, and demonstrate institutional maturity.
Nigeria’s recent removal from the Financial Action Task Force (FATF) Grey List marks a defining moment in the nation’s economic and regulatory journey. More than a bureaucratic success, it symbolises restored confidence in the country’s financial governance and a renewed global trust in its ability to combat money laundering and terrorist financing.
For years, Nigeria has worked quietly but determinedly to strengthen its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework. The delisting, announced on 24 October, is not just the outcome of policy reforms; it is the culmination of painstaking institutional collaboration, legal refinement, and regulatory courage.
The FATF, an intergovernmental body established to set global standards for preventing money laundering, terrorist financing, and proliferation financing, places countries on its “grey list” when they exhibit strategic deficiencies in these areas. Such countries are not sanctioned, but they are subjected to increased monitoring and must demonstrate tangible improvements within a defined period.
Being on the grey list carries a heavy price. It dampens investor confidence, triggers additional scrutiny on international transactions, and makes cross-border financial operations cumbersome. For developing economies like Nigeria, greylisting can stifle foreign direct investment, limit access to global financial systems, and weaken business confidence.
Nigeria’s exit from the list is an affirmation of the progress made. It reflects the determination of institutions like the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the Central Bank of Nigeria (CBN) to restore integrity to the financial system. It also underscores the essential role of the legal community and private sector actors who have worked, often behind the scenes, to ensure compliance with global standards.
This milestone, however, extends beyond compliance. It signals a turning point for the Nigerian economy, governance, and legal practice, reminding professionals that transparency and due diligence are now at the heart of sustainable growth and global credibility.
How Nigeria Earned Its Way Off the Grey List
Nigeria’s journey toward delisting was anything but easy. After being placed on the FATF Grey List in February 2023, the country was required to address key weaknesses in its anti-money laundering and counter-terrorist financing regime. The identified gaps included limited regulatory enforcement, insufficient transparency in beneficial ownership, and weak coordination among financial and enforcement agencies.
Recognising the urgency, the Nigerian government mobilised a comprehensive response. The NFIU coordinated a wide network of institutions, including the EFCC, CBN, Corporate Affairs Commission (CAC), Department of State Services (DSS), Independent Corrupt Practices and Other Related Offences Commission (ICPC), National Insurance Commission (NAICOM), and National Drug Law Enforcement Agency (NDLEA), to execute FATF’s recommended action plan.
Together, these agencies introduced reforms that tightened regulatory frameworks, enhanced information sharing, and improved the prosecution of financial crimes. There was also a deliberate push toward greater transparency in corporate ownership structures and enhanced risk-based supervision across financial institutions and designated non-financial businesses.
For the legal community, the development presents both an opportunity and responsibility. Lawyers and law firms now have an expanded role, not only in ensuring compliance within their practices but also in advising clients on complex regulatory obligations. The NBA’s ongoing work through the Anti-Money Laundering Committee remains critical in fostering a culture of integrity within the profession.
The banking sector was particularly instrumental. Under the CBN’s guidance, banks upgraded their compliance frameworks, strengthened Know Your Customer (KYC) procedures, and implemented advanced transaction monitoring systems. Compliance units were reinforced, beneficial ownership verification was improved, and correspondent banking relationships were stabilized. These reforms gave global partners renewed confidence in Nigeria’s financial institutions.
The legal sector also played a crucial role. Through the Nigerian Bar Association’s Anti-Money Laundering Committee (NBA-AMLC), lawyers championed awareness campaigns, compliance training, and advisory support for clients navigating complex AML/CFT obligations. Law firms began integrating compliance reviews and due diligence as standard parts of their client services, aligning legal practice with evolving international standards.
By 2025, these collective efforts bore fruit. The FATF acknowledged Nigeria’s substantial progress in implementing its action plan and strengthening its institutional frameworks. The October 2025 delisting thus stands as a recognition of the nation’s commitment to reform and the synergy between its public and private sectors.
Why This Matters for the Economy and Global Reputation
Greylisting took its toll on Nigeria’s economy. During that period, international investors and financial institutions approached Nigerian transactions with caution. Cross-border trade faced delays, investment inflows slowed, and businesses dependent on global partnerships grappled with compliance bottlenecks.
Now, the story has changed. Nigeria’s removal from the FATF Grey List restores confidence in the country’s financial stability and regulatory credibility. For investors, it is a signal that the country has strengthened its systems and is serious about accountability and transparency. For international lenders and development partners, it represents a safer environment for collaboration.
The banking sector, which bore much of the reputational strain, stands to benefit the most. With reduced scrutiny, banks can now engage more seamlessly in international transactions, rebuild correspondent relationships, and attract fresh investment. Liquidity, transaction efficiency, and cross-border partnerships are expected to improve significantly.
Yet, delisting also raises the bar. Nigerian banks must sustain the progress made, while ensuring that compliance remains part of their institutional DNA. The global financial environment is unforgiving of regression, and any lapse could undo years of progress.
For the legal community, the development presents both an opportunity and responsibility. Lawyers and law firms now have an expanded role, not only in ensuring compliance within their practices but also in advising clients on complex regulatory obligations. The NBA’s ongoing work through the Anti-Money Laundering Committee remains critical in fostering a culture of integrity within the profession.
…the lesson from this achievement is clear: reforms must endure. The true test of progress lies in the ability to sustain integrity even when external pressure fades. If Nigeria continues on this path, strengthening institutions, promoting accountability, and encouraging professional ethics, it can transform this victory into a long-term foundation for economic growth and good governance.
More broadly, Nigerian businesses can look forward to smoother international dealings. Exporters, importers, fintech companies, and SMEs involved in cross-border trade will face fewer compliance delays. The perception of Nigeria as a high-risk jurisdiction will fade, making it easier to attract partners, investors, and collaborators.
Beyond the numbers, Nigeria’s exit from the grey list improves the nation’s global image. It positions the country as a credible player in international finance; one that takes its reform commitments seriously. This perception is invaluable. In global diplomacy and trade, trust is currency, and Nigeria has just earned back a measure of it.
Sustaining the Momentum
While the delisting is a milestone, it is not the finish line. FATF’s post-monitoring framework ensures that Nigeria’s progress will continue to be assessed. Sustaining compliance will require consistency, transparency, and vigilance from both the government and the private sector.
For businesses, this means maintaining high compliance standards, robust KYC systems, accurate record-keeping, and proactive reporting mechanisms. Sectors such as real estate, financial technology, and legal services, which are particularly vulnerable to money laundering, must take compliance even more seriously.
For professionals like lawyers, accountants, and other financial advisers, the new environment calls for continuous education and ethical commitment. Compliance is not just a regulatory requirement; it is now a measure of credibility and competitiveness. Clients, investors, and regulators alike will increasingly reward firms that demonstrate integrity and foresight.
A Defining Moment for Nigeria
Nigeria’s removal from the FATF Grey List is more than a technical achievement; it is a national statement. It reflects the country’s ability to align with international best practices, rebuild global confidence, and demonstrate institutional maturity.
But the lesson from this achievement is clear: reforms must endure. The true test of progress lies in the ability to sustain integrity even when external pressure fades. If Nigeria continues on this path, strengthening institutions, promoting accountability, and encouraging professional ethics, it can transform this victory into a long-term foundation for economic growth and good governance.
For now, Nigeria has sent a clear message to the world: the era of complacency is over, and the journey toward sustained financial integrity has truly begun.
Oyetola Muyiwa Atoyebi, a Senior Advocate of Nigeria and Fellow of the Chartered Institution of Arbitrators (UK), writes from Abuja.