Nigeria’s Exit from the FATF Grey List: Restoring Confidence and Reclaiming Credibility

For a long time, Nigeria’s place on the Financial Action Task Force (FATF) grey list cast a shadow on its reputation in global finance. That shadow lifted last week when the Paris-based body finally removed Nigeria from the list of countries under “increased monitoring.”

It is a quiet victory, but one with loud implications. The FATF, which sets global standards for tackling money laundering and terrorist financing, acknowledged Nigeria’s significant progress in strengthening its financial systems and enforcing compliance across key institutions.

When Nigeria was listed in February 2023, it faced serious questions about how effectively it was tackling illicit financial flows. Instead of brushing it aside, the government went to work. Over the next two years, it reviewed and updated its anti money laundering and counter terrorist financing (AML/CFT) framework, improved coordination among agencies, and tightened supervision of banks and designated non-financial businesses.

Authorities also introduced stricter access to beneficial ownership information, enhanced financial intelligence sharing, and increased investigations and prosecutions of money laundering offences. Perhaps most importantly, regulators found a way to engage non-profits without undermining legitimate operations, a balance many countries still struggle to strike.

The FATF’s October 2025 plenary acknowledged this progress and confirmed Nigeria’s removal from the list. The watchdog urged continued collaboration with the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) to maintain the momentum.

The delisting sends a strong signal to global markets that Nigeria is serious about financial integrity. The Ministry of Finance described it as “a turning point for investor confidence and economic growth.” The Securities and Exchange Commission added that it would “enhance credibility and attract new investment.”

The impact could be far reaching. With fewer compliance barriers, Nigeria becomes a more attractive destination for foreign direct investment and portfolio inflows. It also strengthens the hand of its fintech sector, long admired for innovation but sometimes held back by global compliance concerns.

For international partners, this development removes a layer of caution. It reassures lenders, investors, and development agencies that Nigeria is aligning with the same transparency standards expected of major economies.

Leaving the FATF grey list does not automatically solve every financial challenge, but it changes perception, and perception drives markets. A stronger reputation could help stabilize foreign exchange flows, increase remittances through formal channels, and improve Nigeria’s bargaining power in trade and investment negotiations.

As the UK High Commissioner put it, this milestone is “a reflection of Nigeria’s serious commitment to reform and transparency.” It is a moment that blends policy discipline with global relevance and proof that progress, when sustained, can rewrite a country’s economic narrative.

For Nigeria, this is not just an administrative win. It is a signal to the world that the country is back in the conversation, credible, reform driven, and ready for investment.