The Central Bank of Nigeria (CBN) has hailed the Financial Action Task Force’s (FATF) formal decision to remove Nigeria from the list of jurisdictions under increased monitoring, commonly known as the “grey list.” The development follows a successful on-site evaluation of Nigeria’s financial reforms, marking a major milestone in the country’s efforts to strengthen financial integrity, transparency, and international confidence.
The FATF’s decision recognizes significant improvements in Nigeria’s regulatory and supervisory frameworks, particularly in combating money laundering, terrorist financing, and proliferation financing. The achievement reflects the outcomes of 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).
According to the CBN, Nigeria’s reforms were assessed by the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA). Key reforms included strengthened oversight of financial institutions through updated AML/CFT regulations, expansion of compliance monitoring across remittance and fintech channels, and enhanced inter-agency coordination between the CBN, NFIU, EFCC, and law enforcement agencies. The Bank also highlighted the implementation of key governance tools such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS).
The CBN noted that these measures have materially strengthened Nigeria’s compliance with global standards, restoring confidence in the integrity of its financial system. The apex bank added that the removal from the FATF grey list is expected to bring tangible benefits for businesses and households — including reduced compliance costs, improved access to international finance, and faster, more affordable cross-border transactions. It also anticipates smoother trade settlements, quicker remittance inflows, and more predictable access to foreign exchange.
CBN Governor, Mr. Olayemi Cardoso, described the FATF’s decision as a “strong affirmation of Nigeria’s reform trajectory and the growing integrity of its financial system.” He said the achievement reflects clear policy direction and coordinated national efforts 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,” Cardoso stated.
The FATF’s decision also reinforces global confidence in Nigeria’s economic management, with international institutions such as Moody’s and Fitch recently upgrading Nigeria’s outlook on the back of stronger external balances, credible policy execution, and renewed monetary-policy credibility. Similarly, the IMF’s 2025 Article IV Consultation highlighted improvements in reserve adequacy, transparency, and reform alignment with global standards.
Nigeria now joins South Africa, Mozambique, and Burkina Faso as the latest African nations to achieve this milestone, reflecting broader progress across the continent.
The Central Bank reaffirmed its commitment to continued collaboration with domestic and international partners to maintain a sound, transparent, and trusted financial system that promotes market integrity, financial stability, and inclusive economic growth.
