Nigeria has officially exited the global money laundering watchlist after the Financial Action Task Force (FATF) removed the country from its “grey list” of nations under heightened monitoring.
The Paris-based global financial watchdog made the announcement at the end of its plenary meeting held on Friday, marking a significant milestone for Africa’s largest economy after nearly two years of intense scrutiny.
The FATF had placed Nigeria on its grey list in February 2023 following concerns over weaknesses in its anti-money laundering and counter-terrorist financing systems. The decision came after the body identified key deficiencies in Nigeria’s ability to track illicit financial flows and regulate its financial institutions effectively.
Since then, the Nigerian government has embarked on several reforms aimed at strengthening the country’s compliance with international financial standards.
Reacting to the development, the Nigerian government hailed the decision as a validation of its ongoing economic and governance reforms. Presidential aides described the removal as a “vote of confidence” in the country’s financial system and in President Bola Tinubu’s administration. “This outcome reinforces international trust in Nigeria’s economy and opens the door to increased foreign investment and trade opportunities,” a government statement read.
Financial analysts have also welcomed the news, noting that Nigeria’s exit from the FATF grey list will ease cross-border financial transactions, attract foreign capital, and reduce transaction costs for Nigerian businesses and individuals. They explained that being on the list previously created barriers for international payments, with many foreign banks subjecting Nigerian transactions to additional checks and delays. The new status, experts say, will boost investor confidence and restore Nigeria’s credibility in the global financial system.
However, experts also warn that Nigeria must sustain its reforms to prevent a relapse into non-compliance. “The challenge now is to maintain vigilance and institutional discipline,” said one financial expert quoted by Reuters. “The removal from the list is progress, but continuous oversight and strong enforcement mechanisms are essential to avoid future lapses.”