Nigeria has been removed from the Financial Action Task Force (FATF) grey list, in what officials are calling a major diplomatic and financial breakthrough for Africa’s largest economy. Multiple Interior and Justice Minister sources told Huhuonline.com that a high-level Nigerian delegation led by the Minister of Justice and Attorney General of the Federation, Lateef Fagbemi, SAN, and Minister of Interior, Olubunmi Tunji-Ojo, Finance Minister, Wale Edun, arrived in Paris on Monday October 20, for the FATF plenary session, where Nigeria’s case for delisting was reviewed and finalized. This followed the “substantial completion” of an action plan to strengthen Nigeria’s anti–money laundering (AML) and counter-terrorism financing (CFT) frameworks; reforms that began in earnest after Nigeria was placed on the grey list in February 2023.

A statement by the Director/Chief Executive Officer, Nigerian Financial Intelligence Unit (NFIU), Hafsat Abubakar Bakari, described Nigeria’s removal from the list as a milestone which marks a historic moment in Nigeria’s fight against financial crimes. She thanked President Bola Tinubu, for his leadership and strategic guidance to ensure Nigeria’s reform process remained on track, and said “Nigeria’s removal from the FATF grey list is a true test of our resilience, coordination and unwavering commitment to reform. It is a clear signal to the world that Nigeria can meet and exceed global standards in financial integrity.” 

Grey-listing placed Nigeria among 21 countries – including South Africa, Cameroon, and Burkina Faso – deemed to have “strategic deficiencies” in their systems to combat financial crime. The designation triggered increased monitoring of Nigeria’s financial activities, prompting foreign investors, international banks, and correspondent institutions to impose stricter compliance measures on transactions linked to Nigerian entities. The result was a chilling effect on foreign investment, trade, and remittances – a particularly heavy blow to Nigeria’s economy, which depends on inflows of capital and an estimated $1 billion in monthly diaspora remittances, according to the Central Bank of Nigeria (CBN). CBN Governor Olayemi Cardoso said earlier this year that “getting Nigeria off the FATF grey list” was among his top priorities, calling it “critical to restoring investor confidence, easing cross-border payments, and supporting the government’s economic recovery agenda.”

What Nigeria Did to Get Here

To meet FATF’s delisting criteria, Nigeria implemented sweeping reforms across its financial and regulatory landscape. These included:

• Amendments to the Money Laundering (Prevention and Prohibition) Act and Terrorism (Prevention and Prohibition) Act, expanding the definition of politically exposed persons (PEPs) and enhancing penalties for non-compliance.

• Creation of a national beneficial ownership register, allowing regulators and foreign partners to trace ultimate asset owners and combat shell-company abuse.

• Enhanced inter-agency coordination, with the Economic and Financial Crimes Commission (EFCC), Nigerian Financial Intelligence Unit (NFIU), and CBN sharing intelligence through a unified reporting system.

• Increased enforcement actions, including asset seizures, high-profile prosecutions, and the freezing of suspicious accounts linked to illicit transactions.

According to government sources, Nigeria has now implemented nearly all of FATF’s 40 technical recommendations, and is undergoing final verification.

The High Cost of Grey Listing: While not as punitive as FATF’s “black list,” which includes high-risk jurisdictions such as North Korea and Iran, grey-listing carries major consequences. For nearly two years, businesses operating in or through Nigeria faced heightened due diligence requirements, longer processing times for international payments, and increased compliance costs. Foreign banks were compelled to conduct enhanced scrutiny on Nigerian clients, often delaying trade payments or terminating business relationships altogether. Analysts estimate that the grey-list designation cost Nigeria hundreds of millions of dollars in lost investment, as international institutions reassessed their risk exposure.

What Delisting Means

Removal from the FATF grey list is expected to yield immediate benefits for Nigeria’s economy:

• Improved investor confidence — making Nigerian banks, Fintechs, and exporters more attractive to global partners.

• Reduced transaction friction, particularly in correspondent banking and cross-border remittances.

• Potential uplift in sovereign credit outlook, as international lenders see improved governance and compliance standards.

Delisting would also align Nigeria with ongoing efforts to rebrand itself as a regional financial hub and destination for responsible investment, especially in fintech, digital payments, and green finance.

A Cautious Path Forward

Despite the progress, experts warn that delisting is not a finish line but a checkpoint. FATF will continue to monitor Nigeria’s implementation to ensure reforms are sustained and not merely performative.

“Delisting is a vote of confidence, but it comes with expectations,” said a senior compliance officer at one of Nigeria’s largest commercial banks. “Regulatory vigilance, transparency, and inter-agency coordination must become the norm, not the exception.”

If successful, Nigeria’s exit from the grey list will mark one of the fastest turnarounds by any major economy – achieved in less than three years – and could signal the country’s re-emergence as a credible and compliant player in the global financial system. For President Bola Tinubu’s administration, it would be a rare policy victory amid mounting economic headwinds; and a strong message to international partners that Nigeria is, once again, open for business.