Nigeria removed from global money-laundering watchlist

The Financial Action Task Force (FATF), the global body responsible for monitoring money laundering and terrorism financing, officially removed Nigeria from its list of jurisdictions under increased monitoring, commonly known as the “grey list”, on Friday. The decision, announced at the FATF Plenary in Paris, France, follows Nigeria’s successful implementation of a 19-point action plan to strengthen its financial integrity framework.
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President Bola Tinubu described the delisting as a strategic victory for the economy and a renewed vote of confidence in Nigeria’s financial governance. He added that the country will sustain the institutionalised reforms, deepen collaboration, and continue to build a financial system that Nigerians and the world can trust.
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‎Nigeria was placed on the FATF grey list in February 2023 due to identified strategic deficiencies, including weak enforcement of anti-money laundering (AML) laws, poor inter-agency coordination, and insufficient corporate transparency. The designation typically increases transaction costs and scrutiny for the country’s financial institutions in the global system, potentially discouraging foreign investment.
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Nigeria’s compliance was achieved through major steps, including the enforcement of the Money Laundering (Prevention and Prohibition) Act, 2022, and the operationalisation of the Beneficial Ownership Register.
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Stakeholders frame the development as a major triumph for financial governance reform. The Director/CEO of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, stated that the achievement was a true test of the country’s resilience, coordination, and unwavering commitment to reform.
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Nigeria, along with South Africa, Mozambique, and Burkina Faso, was removed from the list at the same plenary. The delisting is a major economic boost, as it is expected to ease cross-border transactions, attract foreign capital inflows, and improve overall investor confidence in the financial sector of the country.