The Central Bank of Nigeria (CBN) on Saturday said the removal of Nigeria from the gray list of the Financial Action Task Force (FATF) is a major milestone in its effort to rebuild global confidence in the country's financial system.
The FATF, the intergovernmental body that sets international standards to combat money laundering and terrorist financing, announced that Nigeria has been removed from the list of jurisdictions under enhanced monitoring – commonly known as the gray list – following a successful on-site assessment of the country's anti-financial crime reforms.
The decision, which follows a two-year reform program coordinated by the federal government, recognizes “significant reforms in Nigeria’s regulatory, supervisory and enforcement framework,” the CBN said in a statement. It described the move as a “vote of confidence” in the country's efforts to strengthen financial integrity, transparency and international credibility.
The reform effort was jointly led by the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC).
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According to the apex bank, its own role focuses on enhancing supervision, governance and transparency in the financial sector through measures that align domestic regulations with global standards.
The central bank said a number of initiatives assessed by the FATF and its regional counterpart, the Intergovernmental Action Group against Money Laundering in West Africa (GIABA), include tighter supervision of financial institutions through updated anti-money laundering and counter-terrorism financing (AML/CFT) rules, risk-based supervision and strict fit-and-proper assessments for operators. Is.
It also cited expanded compliance reporting on remittance channels, bureaux de change and fintech platforms to improve traceability; Improved inter-agency data-sharing between the CBN, NFIU, EFCC and law-enforcement agencies; and new market administration tools such as foreign exchange codes and electronic foreign exchange matching systems.
“Together, these measures have strengthened Nigeria’s compliance with global standards and strengthened confidence in the integrity of its financial system,” the CBN said.
Nigeria's exit from the gray list is expected to yield tangible economic benefits, including lower compliance costs for financial institutions, improved access to international finance, and faster, less expensive cross-border transactions.
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The bank said these benefits, over time, “will translate into smoother trade settlements, quicker remittance flows and more predictable access to foreign exchange”, helping to support enterprise growth and deepen financial inclusion.
CBN Governor Olayemi Cardoso said the FATF decision is “a strong affirmation of our reform trajectory and the growing integrity of our financial system.” He added, “This reflects the coordinated efforts of key national institutions working together to deliver a clear policy direction and sustainable, standards-based reforms. Our priority now is to consolidate these gains, ensuring that compliance, innovation and trust continue to go hand in hand to strengthen financial stability and strengthen Nigeria's global credibility.”
Analysts say the delisting marks a significant change for Nigeria, which was added to the FATF gray list in 2023 following concerns over weaknesses in its anti-money laundering and counter-terrorism financing framework.
Grey-listed countries face greater scrutiny from global financial institutions, often resulting in higher compliance costs, longer transaction times, and reduced investor confidence.
The CBN said the FATF recognition is in line with the broader improvements in Nigeria's economic management and the restoration of investor confidence under recent reforms. The bank pointed to recent upgrades of the country's rating outlook by Moody's Investors Service and Fitch Ratings, both of which cited strong external balances and credible monetary policy execution.
Also read: EFCC tightens compliance for non-financial sectors to exit FATF gray list
It also referenced the International Monetary Fund's 2025 Article IV consultation, which highlighted progress in transparency, reserve adequacy and policy alignment with global standards.
The decision could help ease international banking relationships for Nigerian institutions, especially in correspondent banking and cross-border remittance flows, where grey-listing had led to strict due diligence processes.
Nigeria has now joined South Africa, Mozambique and Burkina Faso as the latest African countries to be removed from the FATF monitoring list, signaling wider progress in governance and financial transparency across the continent.
The CBN promised to maintain its reform momentum through continued collaboration with both domestic and international partners. “The CBN is committed to strengthening cooperation with domestic and international partners to maintain a strong, transparent and credible financial system that protects financial stability and market integrity while pursuing inclusive and sustainable economic growth,” the statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications, stressed.
