Market News

The Central Bank of Nigeria (CBN) has commended the Financial Action Task Force (FATF) for officially removing Nigeria from its list of jurisdictions under increased monitoring, also known as the “grey list.”

The decision follows a successful on-site evaluation confirming Nigeria’s substantial progress in strengthening its financial integrity and regulatory frameworks.

The CBN said the FATF’s action reflects the significant improvements Nigeria has made in combating money laundering, terrorist financing and proliferation financing, and marks a major milestone in efforts to enhance transparency and restore international confidence in the country’s financial system.

According to the apex bank, Nigeria’s removal from the grey list will yield tangible economic benefits for both businesses and households.

These include lower compliance costs, improved access to international finance and faster, more affordable cross-border transactions.

The bank added that, over time, these gains will translate into smoother trade settlements, quicker remittance inflows and more predictable access to foreign exchange—factors expected to strengthen livelihoods, spur enterprise growth and deepen financial inclusion.

The CBN described the FATF’s decision as a strong signal of renewed global confidence in Nigeria’s economic management.

It noted that recent upgrades by Moody’s and Fitch Ratings, alongside positive findings from the IMF’s 2025 Article IV Consultation, reinforce the country’s progress in stabilising its external balances, improving transparency and enhancing monetary policy credibility.

CBN Governor Olayemi Cardoso hailed the development as “a strong affirmation of our reform trajectory and the growing integrity of our financial system.”

He added: “The FATF’s decision reflects a clear policy direction and the coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms. Our priority now is to consolidate these gains, ensuring that compliance, innovation and trust continue to advance hand in hand to reinforce financial stability and strengthen Nigeria’s global credibility.”

Nigeria joins South Africa, Mozambique and Burkina Faso among the latest African countries to be delisted by the FATF—an achievement the CBN said underscores Africa’s growing alignment with international financial standards.

In a statement, Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, reaffirmed the bank’s commitment to sustaining reforms that promote a sound, transparent and trusted financial system.

She emphasised that the CBN will continue to collaborate with domestic and international partners to safeguard stability while advancing inclusive and sustainable economic growth.

The FATF’s decision capped a two-year reform programme coordinated by the Federal Government of Nigeria, involving multiple agencies including the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC).

The CBN’s contributions, the statement noted, were focused on strengthening supervision, governance and transparency across the financial system. Key reforms assessed by the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) included:

Strengthened oversight of financial institutions through updated AML/CFT regulations, risk-based supervision and fit-and-proper assessments.

Expanded compliance reporting across remittance channels, bureaux de change and fintech platforms to improve traceability.

Enhanced inter-agency data-sharing and enforcement coordination between the CBN, NFIU, EFCC and law enforcement agencies.

Implementation of governance tools such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS).

The apex bank said these coordinated reforms have materially improved Nigeria’s compliance with global standards, bolstered confidence in the integrity of its financial system and positioned the country for stronger economic engagement with international partners.