The Central Bank of Nigeria (CBN) has pledged to reinforce recent reforms in the financial system, emphasizing that compliance, innovation, and trust must advance together to enhance financial stability and bolster Nigeria’s global credibility.
This commitment follows the Financial Action Task Force’s (FATF) formal announcement that Nigeria has been removed from its list of jurisdictions under increased monitoring, commonly known as the “grey list.”
In a statement on Saturday, the CBN noted that this decision comes after a successful on-site evaluation of Nigeria’s frameworks for anti-money laundering and counter-terrorist financing, marking a significant milestone in the country’s financial reform journey.
“The FATF’s decision to remove Nigeria from the grey list is a strong affirmation of our reform trajectory and the increasing integrity of our financial system,” stated CBN Governor Olayemi Cardoso. “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.”
Path to Delisting
The FATF’s decision follows a two-year reform program led by the Federal Government of Nigeria, involving key agencies such as the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
The CBN has played a crucial role in enhancing governance and transparency throughout the financial system. Reforms evaluated by the FATF and its regional partner, the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), included:
– Strengthened oversight of financial institutions through updated anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations, risk-based supervision, and fit-and-proper assessments.
– Expanded compliance monitoring across remittance channels, bureau de change, and fintech platforms to improve traceability.
– Enhanced inter-agency data sharing and enforcement coordination.
– Implementation of market governance tools such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS).
These measures have significantly improved Nigeria’s alignment with global standards, boosting confidence in the integrity of its financial system.
Expected Benefits for Businesses and Households
The delisting is anticipated to provide concrete benefits for businesses and households, including reduced compliance costs, improved access to international financing, and faster, more affordable cross-border transactions.
Over time, these advantages will support smoother trade settlements, quicker remittance inflows, and more predictable access to foreign exchange, enhancing livelihoods, promoting enterprise growth, and increasing financial inclusion.
Nigeria’s exit from the grey list also aligns with a broader international recognition of its economic reforms. Recent upgrades in Nigeria’s credit outlook by Moody’s and Fitch, along with the IMF’s 2025 Article IV Consultation, have highlighted improved reserve adequacy, greater transparency, and credible policy execution.
Nigeria now joins South Africa, Mozambique, and Burkina Faso as the latest African countries to achieve this milestone, reflecting a growing regional momentum toward financial integrity and global integration.
The CBN reiterated its commitment to collaborating with domestic and international partners to maintain a sound, transparent, and trusted financial system that supports inclusive and sustainable economic growth.
What You Should Know
South Africa and Nigeria were added to the grey list in February 2023, while Mozambique was added in October 2022, and Burkina Faso was initially designated in February 2021.
Nigeria’s exit from the FATF grey list represents a confidence boost for its financial system and broader economy. Being on the list often increases the cost and complexity of cross-border transactions, as global financial institutions impose stricter scrutiny and compliance checks. With its removal, Nigeria can expect smoother and more affordable international transactions, including remittance inflows that average around $20 billion annually.
