FATF exit a vote of confidence in Nigeria’s financial reforms — CBN
Nigeria’s removal from the Financial Action Task Force (FATF) grey list marks a major milestone in the country’s effort to rebuild global confidence in its financial system, the Central Bank of Nigeria (CBN) said on Saturday.
The FATF, the intergovernmental body that sets international standards for combating money laundering and terrorist financing, announced that Nigeria has been taken off its list of jurisdictions under increased monitoring — commonly known as the grey list — after a successful on-site evaluation of the country’s anti-financial crime reforms.
The decision, which follows a two-year reform programme coordinated by the federal government, recognises “significant improvements in Nigeria’s regulatory, supervisory, and enforcement frameworks,” the CBN said in a statement. It described the move as a “vote of confidence” in the country’s efforts to strengthen financial integrity, transparency, and international credibility.
The reform effort was jointly led by the CBN, the federal ministry of justice, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
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According to the apex bank, its own role focused on enhancing supervision, governance, and transparency across the financial sector through measures that aligned domestic regulations with global standards.
The central bank said several initiatives assessed by the FATF and its regional counterpart, the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) include tighter oversight of financial institutions through updated anti-money laundering and counter-terrorism financing (AML/CFT) rules, risk-based supervision, and stricter fit-and-proper assessments for operators.
It also cited expanded compliance reporting across remittance channels, bureaux de change, and fintech platforms to improve traceability; better inter-agency data-sharing among the CBN, NFIU, EFCC and law-enforcement agencies; and new market governance tools such as the Foreign Exchange Code and Electronic Foreign Exchange Matching System.
“Together, these measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system,” the CBN said.
Nigeria’s exit from the grey list is expected to deliver tangible economic benefits, including lower compliance costs for financial institutions, improved access to international finance, and faster, less expensive cross-border transactions.
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The bank said these gains will, over time, “translate into smoother trade settlements, quicker remittance inflows, and more predictable access to foreign exchange,” helping to support enterprise growth and deepen financial inclusion.
Olayemi Cardoso, the CBN governor, said the FATF’s decision “is a strong affirmation of our reform trajectory and the growing integrity of our financial system.” He added, “It reflects a clear policy direction and the coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms. Our priority now is to consolidate these gains, ensuring that compliance, innovation, and trust continue to advance hand in hand to reinforce financial stability and strengthen Nigeria’s global credibility.”
Analysts say the delisting marks an important shift for Nigeria, which was added to the FATF grey list in 2023 after concerns over weaknesses in its anti-money laundering and counter-terrorism financing framework.
Grey-listed countries face greater scrutiny from global financial institutions, often resulting in higher compliance costs, longer transaction times, and reduced investor confidence.
The CBN said the FATF’s recognition aligns with broader improvements in Nigeria’s economic management and the restoration of investor confidence under recent reforms. The bank pointed to recent upgrades of the country’s ratings outlook by Moody’s Investors Service and Fitch Ratings, both of which cited stronger external balances and credible monetary policy execution.
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It also referenced the International Monetary Fund’s 2025 Article IV Consultation, which highlighted progress in transparency, reserve adequacy, and policy alignment with global standards.
The decision could help ease international banking relations for Nigerian institutions, particularly in correspondent banking and cross-border remittance flows, where grey-listing had led to tighter due-diligence procedures.
Nigeria now joins South Africa, Mozambique, and Burkina Faso as the latest African countries to be removed from the FATF monitoring list, signaling wider progress in governance and financial transparency across the continent.
The CBN pledged to sustain its reform momentum through continued collaboration with both domestic and international partners. “The CBN remains committed to strengthening collaboration with domestic and international partners to sustain a sound, transparent, and trusted financial system that safeguards financial stability and market integrity while advancing inclusive and sustainable economic growth,” the statement, signed by Hakama Sidi Ali, acting director, corporate communications, emphasised.
