CBN Hails Nigeria’s Exit from FATF Grey List

...Pledges to Deepen Financial Reforms and Global Confidence 

The Central Bank of Nigeria (CBN) has welcomed the Financial Action Task Force’s (FATF) formal announcement removing Nigeria from its “grey list” of jurisdictions under increased monitoring. The decision follows a successful on-site evaluation confirming the effectiveness of wide-ranging reforms implemented across the country’s financial system.

The FATF’s move acknowledges major progress in Nigeria’s regulatory, supervisory, and enforcement frameworks—particularly in the fight against money laundering, terrorist financing, and proliferation financing. It represents a significant milestone in Nigeria’s ongoing efforts to strengthen financial integrity, promote transparency, and rebuild international confidence.

The delisting follows a two-year national reform drive led by the Federal Government of Nigeria, with the coordinated participation of key institutions including the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).

The CBN played a central role in enhancing financial sector supervision, governance, and transparency. Among the key reforms reviewed by FATF and its regional counterpart, the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), were:

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

• Expanded compliance monitoring across remittance channels, bureaux de change, and fintech platforms to boost transparency and traceability.

• Improved inter-agency collaboration through data-sharing and coordinated enforcement between the CBN, NFIU, EFCC, and other law-enforcement bodies.

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

These measures have significantly bolstered Nigeria’s adherence to global financial standards, reinforcing confidence in the resilience and credibility of its financial system.

According to the CBN, Nigeria’s removal from the grey list will bring tangible economic benefits—lowering compliance costs, improving access to international finance, and making cross-border transactions faster and more affordable. These improvements are expected to support smoother trade settlements, quicker remittance inflows, and more predictable access to foreign exchange—strengthening livelihoods, supporting enterprise growth, and advancing financial inclusion.

The FATF’s decision is also seen as a reaffirmation of Nigeria’s economic reform momentum. Recent international assessments have echoed this positive trend: both Moody’s and Fitch have upgraded Nigeria’s ratings outlook, citing stronger external balances, credible policy execution, and renewed monetary policy credibility. Similarly, the IMF’s 2025 Article IV Consultation commended Nigeria’s improved reserve adequacy, transparency, and reform alignment with international standards.

Commenting on the announcement, CBN Governor Olayemi Cardoso stated “The FATF’s decision to remove Nigeria from the grey list is a strong affirmation of our reform trajectory and the growing integrity of our financial system. It 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 now joins South Africa, Mozambique, and Burkina Faso as the latest African nations to achieve this milestone, signalling broader progress in strengthening anti-financial crime frameworks across the continent.

The CBN reaffirmed its commitment to deepening collaboration with both domestic and international partners to maintain a transparent, resilient, and trusted financial system—one that safeguards stability while driving inclusive and sustainable economic growth.