In a recent announcement, the Central Bank of Nigeria (CBN) shared its active engagement efforts aimed at facilitating the country’s removal from the Financial Action Task Force (FATF) grey list by May 2025. The FATF placed Nigeria on the grey list in February 2024, identifying it as a nation requiring increased monitoring due to strategic deficiencies in combating money laundering and terrorist financing. Being on this list implies heightened scrutiny for Nigeria’s financial sector and greater difficulty in cross-border financial flows, which impacts remittance and investment inflows.
According to CBN’s Deputy Governor of Financial System Stability, Kingsley Obiora, the bank is committed to resolving all outstanding concerns from the FATF. Speaking at an IMF meeting in Washington, Obiora expressed optimism about Nigeria’s progress, explaining, “We’ve worked intensively to address the issues, and I expect we will be removed from the list by May 2025.”
Yemi Cardoso, the newly appointed CBN Governor, echoed this commitment, emphasizing the bank’s collaborative approach. In efforts to boost foreign direct investment (FDI) and remittances, Cardoso reported productive meetings with International Money Transfer Operators (IMTOs) and Nigeria’s diaspora communities. He highlighted a new non-resident account program designed to streamline remittance flows into Nigeria, with the goal of increasing these flows to $1 billion. “Our aim is ambitious yet achievable,” Cardoso noted, adding that his team is actively removing bottlenecks to make remittances more efficient and secure.
This initiative is part of Nigeria’s broader strategy to strengthen its economic stability by enhancing anti-money laundering measures and improving its financial infrastructure. The CBN believes that achieving FATF compliance will stimulate economic growth, build investor confidence, and ultimately lead to sustainable financial inclusion and economic resilience.
In addition, the Nigerian Financial Intelligence Unit (NFIU) has reported positive feedback from the FATF on Nigeria’s recent progress, stating that the country’s fourth compliance report received favorable reviews. The FATF will continue to monitor Nigeria’s progress as the government works towards fulfilling all requirements to leave the grey list.
If successful, Nigeria’s removal from the FATF grey list will mark a significant milestone, showcasing the country’s commitment to international standards in financial transparency and security.
