BY NKECHI NAECHE-ESEZOBOR—The Central Bank of Nigeria (CBN) has commended the Financial Action Task Force’s (FATF) decision to remove Nigeria from its “grey list” of jurisdictions under increased monitoring, following a successful on-site evaluation of the country’s financial reforms.
The apex bank described the move as a major milestone in Nigeria’s ongoing efforts to strengthen financial system integrity, transparency, and international confidence.
In a statement signed by Hakama Sidi Ali (Mrs.), Acting Director of Corporate Communications, the CBN said the FATF’s decision recognizes “significant improvements in Nigeria’s regulatory, supervisory, and enforcement frameworks, particularly in combating money laundering, terrorist financing, and proliferation financing.”
The removal follows a two-year reform programme coordinated by the Federal Government of Nigeria, involving multiple agencies — including the CBN, Federal Ministry of Justice, Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
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According to the CBN, its contributions centered on strengthening supervision, governance, and transparency across the financial system. Key reforms reviewed by FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) included:
- Enhanced oversight of financial institutions through updated AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) regulations and risk-based supervision.
- Expanded compliance monitoring across remittance channels, bureaux de change, and fintech platforms.
- Improved inter-agency coordination and data sharing among the CBN, NFIU, and EFCC.
- Implementation of new market governance tools such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS).
The CBN noted that Nigeria’s removal from the grey list will yield tangible economic benefits, including reduced compliance costs, improved access to international finance, and faster, cheaper cross-border transactions. These gains are expected to enhance trade, boost remittance inflows, and deepen financial inclusion.
The FATF’s decision also reinforces the renewed global confidence in Nigeria’s economic management. Recent assessments by Moody’s and Fitch Ratings upgraded Nigeria’s outlook, while the IMF’s 2025 Article IV Consultation highlighted stronger external balances, improved transparency, and credible policy execution.
CBN Governor Olayemi Cardoso described the FATF’s announcement as “a strong affirmation of Nigeria’s reform trajectory and the growing integrity of its financial system.”
“It reflects a clear policy direction and the coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms,” Cardoso said. “Our priority now is to consolidate these gains to ensure that compliance, innovation, and trust continue to advance hand in hand.”
Nigeria now joins South Africa, Mozambique, and Burkina Faso among African nations recently delisted by the FATF — a development the CBN says underscores the continent’s growing progress in financial governance and transparency.
