By Bassey Udo
Nigeria’s removal from the Financial Action Task Force’s (FATF) grey list will boost the growth of businesses and bring benefits to households, the Central Bank of Nigeria (CBN) has said.
Reacting to the formal announcement of Nigeria’s removal from the list of jurisdictions under increased monitoring, known as the “grey list”, the apex bank described it as a welcome development as would not only help lower compliance costs in businesses and improve access to international finance, but also make cross-border transactions faster and more affordable.
“With time, these gains will translate into smoother trade settlements, quicker remittance inflows, and even more
predictable access to foreign exchange – enhancing livelihoods, supporting enterprise growth, and deepening financial inclusion,” the CBN said in a statement in Abuja.
The CBN said the FATF decision to remove Nigeria from its grey list reinforces the broader restoration of global confidence in Nigeria’s economic management.
Recent international assessments, it noted, underscore the momentum, with
Moody’s and Fitch upgrading Nigeria’s ratings outlook on the back of stronger external balances, credible policy execution, and renewed monetary-policy credibility.
Similarly, the CBN said the International Monetary Fund (IMF)’s 2025 Article IV Consultation highlighted improved reserve adequacy, greater
transparency, and a reform agenda were increasingly aligned with global standards.
The decision, which recognises significant improvements in Nigeria’s regulatory, supervisory, and enforcement frameworks, particularly in combating money laundering, terrorist financing, and proliferation financing, followed a successful on-site evaluation of reforms implemented across the financial system by the present administration.
The CBN said the FATF decision marks an important milestone in the country’s continuing efforts to strengthen financial system integrity, transparency, and international confidence.
The FATF’s decision follows a two-year reform programme coordinated by the 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).
The CBN’s contribution centred on enhancing supervision, governance, and transparency across the financial system.
Key reforms assessed by the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA, FATF’s regional assessment body, included strengthened oversight of financial institutions through updated Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations, risk-based supervision, and fit-and-proper assessments.
Other reforms included the expansion of compliance reporting and monitoring across remittance channels, bureaux de change, and fintech platforms to improve traceability and transparency; enhanced inter-agency data-sharing and enforcement coordination between the CBN, the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), and law-enforcement bodies.
The reforms also covered the implementation of market governance tools, including the Foreign Exchange Code (FX Code) and Electronic Foreign Exchange Matching System (EFEMS), which together, materially strengthened Nigeria’s compliance with global
standards and reinforced confidence in the integrity of its financial system.
Commenting on the development, the CBN governor, Olayemi Cardoso, said: “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.”
He said the priority of the CBN would now be to consolidate these gains, ensure that compliance, innovation,
and trust continue to advance hand in hand to reinforce financial stability and strengthen Nigeria’s global credibility.
With the decision, Nigeria joins South Africa, Mozambique, and Burkina Faso as the latest African countries to
achieve this milestone, reflecting broader progress across the continent.
Cardoso reiterated CBN’s commitment to strengthen collaboration with domestic and international partners to sustain a sound, transparent, and trusted financial system that safeguards financial stability and market integrity while advancing inclusive and sustainable economic
growth.
