President Bola Tinubu has welcomed Nigeria's delisting from the Financial Action Task Force (FATF)
President Bola Tinubu has welcomed Nigeria’s removal from the Financial Action Task Force (FATF) grey list, describing it as a major milestone that restores international confidence in the nation’s financial system. The delisting reflects Nigeria’s progress in anti-money laundering, counter-terrorism financing, and fiscal transparency reforms.
On October 24, 2025, the Financial Action Task Force (FATF) officially removed Nigeria from its "grey list" of countries under increased monitoring for anti-money laundering and counter-terrorist financing deficiencies. This decision followed Nigeria's successful implementation of an action plan to strengthen its financial transparency and regulatory framework. Nigeria was originally added to the list in February 2023.
Reasons for removal
Nigeria's delisting is a result of legislative reforms, institutional strengthening, and enhanced inter-agency coordination to improve its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework. Key reforms and contributions included:
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Enactment and enforcement of the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022.
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The operationalization of the Beneficial Ownership Register.
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Improved supervision of designated non-financial businesses and professions.
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Contributions from various government ministries, agencies, and private sector representatives who participated in the National Task Force on AML/CFT.
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Expected impact of Nigeria's delisting
The removal is projected to have significant positive economic and financial effects on the country.
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Reduced cost of international transactions: Financial institutions will face fewer enhanced due diligence requirements and lower compliance risks when dealing with Nigerian entities. This will reduce the cost and friction for cross-border payments, including for international businesses and remittance inflows.
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Increased investor confidence and capital flows: The delisting signals that Nigeria's financial system is strong, transparent, and trustworthy, which is expected to boost investor sentiment. Improved foreign investor confidence can lead to increased foreign direct investment (FDI) and capital inflows. Being on the grey list was estimated to reduce foreign capital inflows by as much as 7.6% of GDP.
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Smoother cross-border payments: Fintechs, banks, and cross-border payment providers can now access international banking networks more easily. This can lead to more efficient and cheaper financial services, especially for the approximately $20 billion in annual remittances Nigeria receives.
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Improved access to global markets: For sectors like aviation, removal from the grey list makes it easier and more attractive for international partners to engage in business, such as dry-leasing aircraft. The move also signals an improved outlook for financial sector activities and reinforces confidence in Nigeria's monetary and financial systems.
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