Nigeria TV Info 

Nigeria Exits Global Money-Laundering Watchlist

In a major development for its financial sector and international standing, Nigeria has officially been removed from the Financial Action Task Force’s (FATF) “grey list” of countries under increased monitoring.

What Happened

• On October 24, 2025, the FATF announced during its plenary meeting in Paris that it had delisted Nigeria from its grey list of countries under heightened scrutiny for money laundering and terrorist-financing risks.
• Nigeria had been placed on that list in early 2023 over identified deficiencies in its anti-money laundering / counter terrorist-financing (AML/CFT) systems.
• The delisting comes alongside similar actions for South Africa, Mozambique, and Burkina Faso.

Why It Matters

• The FATF credited Nigeria with improvements such as stronger inter-agency coordination, enhanced oversight of financial institutions, and financial intelligence-sharing reforms.
• Exiting the grey list is expected to reduce friction in cross-border payments, lower the cost of funding for business activity, and improve investor confidence.
• According to analysts, being on the grey list had depressed foreign capital inflows. Delisting may help restore Nigeria’s access to global financial services and ease constraints on trade finance.

Government Reaction & Next Steps

• The Nigerian government welcomed the decision. President Bola Tinubu described the delisting as a “major milestone” in the country’s efforts to build financial transparency and global credibility.
• Officials emphasised that reforms underpinning the decision included legislative updates, strengthening financial oversight institutions, and implementation of an action plan developed in partnership with FATF.
• However, authorities noted that delisting is not the end — sustaining reforms, maintaining transparency, and continuously improving AML/CFT mechanisms remain priorities.

Implications & Risks

• Positive effects: improved global perception, increased foreign investment, easier access to correspondent banking services, reduced costs for trade finance.
• Risks/challenges: reforms must be institutionalised; vigilance required to prevent regression; continued oversight by FATF or other bodies; political & operational pressures.
• Analysts will watch how quickly these improvements translate into growth in capital flows, credit availability, and lower transaction costs for businesses.