The Central Bank of Nigeria (CBN) has committed to building on its recent financial reforms to ensure sustained compliance, innovation, and trust in the nation’s financial system. This announcement comes on the heels of Nigeria’s removal from the Financial Action Task Force’s (FATF) grey list, a significant achievement that underscores the country’s progress in combating money laundering and terrorist financing.
On Saturday, the FATF officially removed Nigeria from its list of jurisdictions under increased monitoring, following a thorough evaluation of the country’s anti-money laundering and counter-terrorism financing (AML/CFT) measures. The decision marks a key milestone in Nigeria’s ongoing efforts to enhance the integrity of its financial system and boost its standing in the global economy.
CBN Governor Olayemi Cardoso hailed the delisting as a testament to Nigeria’s reform efforts. “This achievement reflects the dedication of our institutions to align with global standards,” Cardoso said. “Our focus now is to maintain this momentum, ensuring that our financial system remains robust, transparent, and globally competitive.”
**A Two-Year Reform Journey**
Nigeria’s exit from the grey list follows a comprehensive two-year reform program spearheaded by the Federal Government, with contributions from agencies such as the CBN, the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), and the Federal Ministry of Justice. Key reforms included:
– Enhanced regulatory oversight of financial institutions through updated AML/CFT frameworks and risk-based supervision.
– Improved monitoring of remittance channels, bureaux de change, and fintech platforms to ensure greater transparency.
– Strengthened coordination and data-sharing among agencies to combat financial crimes.
– Introduction of market governance tools, including the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS).
These efforts, evaluated by FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), have significantly aligned Nigeria’s financial system with international best practices.
**Economic Benefits for Nigeria**
The delisting is expected to bring substantial benefits to Nigerian businesses and households. Reduced compliance costs, easier access to international financing, and more efficient cross-border transactions are among the anticipated outcomes. These improvements will facilitate smoother trade, faster remittance inflows—estimated at $20 billion annually—and more reliable access to foreign exchange, fostering economic growth and financial inclusion.
Nigeria’s removal from the grey list also aligns with positive international assessments of its economic reforms. Recent reports from Moody’s, Fitch, and the IMF’s 2025 Article IV Consultation have praised Nigeria’s improved reserve adequacy, policy transparency, and economic management.
**A Regional Milestone**
Nigeria joins South Africa, Mozambique, and Burkina Faso as one of the latest African nations to exit the FATF grey list, signaling a broader regional push toward financial integrity. South Africa and Nigeria were added to the list in February 2023, while Mozambique and Burkina Faso were listed in October 2022 and February 2021, respectively.
The CBN emphasized its commitment to collaborating with domestic and international partners to maintain a transparent and resilient financial system that supports sustainable economic growth.
**Looking Ahead**
Nigeria’s exit from the FATF grey list is a significant step toward reinforcing its position as a trusted player in the global financial system. As the country continues to consolidate its reforms, the focus remains on fostering innovation, compliance, and trust to drive long-term economic prosperity.
