FATF Removes Nigeria from Greylist, Boosting Financial Credibility

The Financial Action Task Force (FATF) officially removed Nigeria from its greylist of countries with deficiencies in anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks during its plenary meeting in Paris on Friday. This removal places Nigeria among a select group of nations that have demonstrated significant progress in strengthening their financial crime prevention systems.

Nigeria, along with South Africa, Mozambique, and Burkina Faso, was taken off the FATF’s list of jurisdictions under enhanced monitoring due to improved efforts in combating illicit financial flows. The FATF noted that Nigeria’s enhanced coordination among government agencies, legal reforms, and enforcement mechanisms were key contributors to this success.

The greylisting of Nigeria occurred in 2023, spotlighting the country’s challenges around financial transparency and compliance with global AML and CFT standards. Since then, Nigeria has implemented a comprehensive 19-point action plan developed jointly with the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), aimed at addressing identified gaps.

A high-level Nigerian delegation led by Minister of Justice and Attorney-General Lateef Fagbemi, Minister of Finance and Coordinating Minister of the Economy Wale Edun, Minister of Interior Olubunmi Tunji-Ojo, and CEO of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, attended the announcement ceremony in Paris, symbolizing the country’s commitment to global financial integrity.

President Bola Ahmed Tinubu described Nigeria’s removal from the greylist as a “major milestone in Nigeria’s journey towards economic reform, institutional integrity, and global credibility.” In a statement released by his Special Adviser on Information and Strategy, Bayo Onanuga, the President emphasized that this achievement signals the beginning of a new chapter in Nigeria’s financial reform agenda. He pledged the government’s resolve to continue strengthening institutional collaboration and build a trustworthy financial system for Nigerians and international partners.

The FATF commended Nigeria for enhancing its inter-agency coordination, updating legislation, and improving the implementation of AML/CFT regulations. These efforts have included empowering the Nigerian Financial Intelligence Unit (NFIU), enhancing financial intelligence sharing, and tightening oversight of financial institutions.

ADVERTISEMENT

Experts suggest that Nigeria’s delisting from the FATF greylist will improve investor confidence, ease international financial transactions, and bolster the country’s economic outlook by demonstrating adherence to global financial standards.

This progress is part of broader reforms in Nigeria’s financial sector including the adoption of advanced technologies for monitoring and compliance, bolstered enforcement against illicit transactions, and sustained cooperation with international anti-money laundering bodies.

As Nigeria moves forward, the government’s continued focus on institutional reforms, enforcement, and transparency is expected to strengthen its position as a credible player in the global financial system.