Nigeria’s removal from FATF grey list marks boost for financial credibility – CBN
Nigeria’s removal from the Financial Action Task Force’s (FATF) grey list marks a significant milestone in restoring confidence in the country’s financial system, the Central Bank of Nigeria (CBN) said on Saturday, after the global watchdog acknowledged reforms that strengthened regulation, transparency, and enforcement across the financial sector.
In a statement signed by its Acting Director of Corporate Communications, Hakama Ali, the CBN said the FATF’s decision followed an extensive review of Nigeria’s reform efforts to improve compliance with international anti-financial crime standards.
The Financial Action Task Force (FATF), at its October 2025 plenary in Paris, officially removed Nigeria from its list of countries under increased monitoring after the country successfully implemented a 19-point action plan to strengthen its anti-money laundering and counter-terrorism financing framework.
Nigeria had been placed on the grey list in February 2023, when the FATF identified strategic weaknesses in its systems for combating financial crimes.
The FATF, which sets global standards for combating money laundering, terrorist financing, and proliferation financing, announced Nigeria’s exit following a successful on-site evaluation of the country’s anti-financial crime framework.
The decision means Nigeria is no longer among jurisdictions under “increased monitoring”, a category that had placed it under extra scrutiny by international partners and investors.
According to the CBN, the FATF decision recognises “significant improvements” in Nigeria’s regulatory and supervisory systems and marks progress in efforts to enhance financial integrity and international confidence.
The bank said the outcome followed a two-year reform programme coordinated by the federal government and involving several agencies, including the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
Under the process led by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), the FATF’s regional assessment body, Nigeria’s progress was measured against global compliance standards.
The CBN’s contribution focused on strengthening oversight of financial institutions through updated anti-money laundering and countering the financing of terrorism (AML/CFT) regulations, risk-based supervision, and fit-and-proper assessments for key financial operators.
Other measures included expanded compliance reporting across bureaux de change, remittance channels, and fintech platforms to improve fund traceability and enhanced inter-agency coordination between the CBN, NFIU, EFCC, and law enforcement agencies. The CBN also introduced market governance tools such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS) to boost transparency in currency operations.
CBN Governor Olayemi Cardoso described the FATF’s decision as a validation of Nigeria’s reform path.
“The FATF’s decision to remove Nigeria from the grey list is a strong affirmation of our reform trajectory and the growing integrity of our financial system,” he said. “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.”
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The bank said the decision will yield tangible benefits for businesses and households by lowering compliance costs, improving access to international finance, and making cross-border transactions faster and more affordable. Over time, these gains are expected to support trade, quicken remittance inflows, and enhance access to foreign exchange, thereby boosting enterprise growth and financial inclusion.
The FATF’s decision, the CBN noted, reinforces growing international confidence in Nigeria’s economic management. It comes amid recent upgrades by global ratings agencies, Moody’s and Fitch, which cited more substantial external balances and improved policy credibility. The International Monetary Fund’s 2025 Article IV Consultation also commended Nigeria for improved reserve adequacy and a reform agenda aligned with global standards.
Nigeria now joins South Africa, Mozambique, and Burkina Faso as the latest African countries to have exited the FATF grey list, reflecting a broader trend of progress in financial transparency across the continent.
The CBN reaffirmed its commitment to maintaining collaboration with domestic and international partners “to sustain a sound, transparent, and trusted financial system that safeguards stability while advancing inclusive and sustainable economic growth.”