Nigeria’s Removal from FATF Grey List Boosts Investor Confidence — CBN

Nigeria has officially been removed from the Financial Action Task Force (FATF) grey list, marking a major milestone in the country’s ongoing financial reforms and global reputation recovery.

The Central Bank of Nigeria (CBN) announced that the delisting will strengthen investor confidence, attract foreign capital, and lower the cost of international transactions.

In a statement released by CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank noted that Nigeria’s removal from the grey list represents a “significant milestone” in restoring trust in the nation’s financial system.

According to the CBN, this achievement will reduce financial risks, lower compliance costs, and make cross-border transactions faster and more affordable for Nigerian businesses and individuals.

The statement explained that delisting from the FATF grey list will:

1. Boost foreign investor confidence.
2. Reduce the cost of correspondent banking.
3. Facilitate smoother trade and investment flows.
4. Improve access to international finance.
5. Support economic growth and financial inclusion.

The CBN emphasized that the reforms will lead to more efficient trade settlements, quicker remittance inflows, and more predictable access to foreign exchange — all of which are vital for enterprise growth and household welfare.

Nigeria Governors’ Forum Commends the Achievement

The Nigeria Governors’ Forum (NGF) has also applauded the country’s removal from the FATF grey list, describing it as a victory for transparency and accountability.

In a statement issued by its spokesman, Yunusa Abdullahi, the NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, credited the success to the collaborative efforts of President Bola Tinubu, the 36 state governors, and key financial institutions.

“We are proud to see Nigeria formally welcomed back into the global transparency community,” AbdulRazaq said.
“This outcome reflects trust and confidence in our financial systems and leadership, both at national and sub-national levels.”

The forum explained that the FATF decision came after years of scrutiny and review of Nigeria’s financial practices by international bodies.

How Nigeria Achieved the FATF Clearance

Nigeria was placed on the FATF grey list after the global watchdog identified weaknesses in its fight against money laundering and terrorism financing.

According to the NGF, the country’s exit from the list was achieved through:

• Legislative reforms and policy strengthening.
• Improved corporate transparency and beneficial ownership registry.
• Better coordination among intelligence, law enforcement, and regulatory agencies.
• Enhanced inter-agency data-sharing and enforcement mechanisms.

The NGF also highlighted the contribution of the Federal Ministry of Finance, CBN, Economic and Financial Crimes Commission (EFCC), and Nigeria Financial Intelligence Unit (NFIU), noting that their joint efforts played a key role in addressing FATF’s concerns.

House Committee Praises Inter-Agency Collaboration

In a related statement, the Chairman of the House Committee on Financial Crimes, Rep. Ginger Onwusibe, described the development as a “national victory for integrity, resilience, and inter-agency collaboration.”

He commended the Tinubu-led administration, the EFCC, ICPC, FIRS, CBN, Corporate Affairs Commission (CAC), and other regulatory bodies for their roles in ensuring compliance with global anti-money laundering and counter-terrorism financing (AML/CFT) standards.

“This achievement restores global confidence in Nigeria’s financial system and proves our ability to meet international standards of transparency and accountability,” Onwusibe stated.

He also praised the National Assembly for passing critical laws such as the Money Laundering (Prevention and Prohibition) Act, which strengthened the country’s legal framework against financial crimes.

CBN’s Role in Strengthening Financial Integrity

The CBN Governor, Olayemi Cardoso, credited the success to Nigeria’s improved financial supervision and transparency.

“This is an important achievement for Nigeria’s financial system. Our enhanced AML/CFT framework and closer supervisory engagement with financial institutions have restored international confidence,” he said.

The CBN confirmed it has implemented several measures to ensure compliance, including:

• Stricter anti-money laundering and counter-terrorism financing regulations.
• Risk-based supervision and proper due diligence assessments.
• Broader oversight of remittance channels, bureaux de change, and fintech platforms.
• The introduction of the Foreign Exchange Code (FX Code) and Electronic Foreign Exchange Matching System (EFEMS) to improve transparency in the FX market.

Economic Implications of the FATF Delisting

The FATF decision is expected to bring tangible economic benefits, including:

• Lower transaction costs for international businesses.
• Increased investor participation in Nigeria’s capital markets.
• Easier access to global trade financing.
• Growth in remittance inflows from the diaspora.
• Better foreign exchange stability and reduced volatility.

The CBN noted that these improvements would directly impact exporters, importers, and households, promoting economic growth, financial inclusion, and job creation.

Nigeria’s Commitment to Global Standards

The CBN reaffirmed its commitment to maintaining compliance with global AML/CFT standards, emphasizing that sustaining transparency and governance reforms will remain a continuous process.

The bank also recognized the role of international partners such as the IMF and major rating agencies, which have cited Nigeria’s improved fiscal management, better reserve adequacy, and growing policy credibility in recent assessments.

“We will continue to work with global and domestic partners to prevent illicit financial flows and protect the integrity of Nigeria’s financial system,” the CBN stated.

Key Takeaways

• Nigeria has officially been removed from the FATF grey list.
• The move boosts investor confidence and lowers cross-border transaction costs.
• It strengthens Nigeria’s reputation as a credible financial hub in Africa.
• The CBN, EFCC, NFIU, CAC, and Finance Ministry played key roles in achieving compliance.
• The FATF delisting will promote financial inclusion, attract foreign investments, and improve economic stability.