The Central Bank of Nigeria (CBN) has rolled out drums to celebrate removal of Nigeria from the list of jurisdictions under increased monitoring, known as the “grey list,” by the Financial Action Task Force (FATF).
The removal of Nigeria by the body after a successful on-site evaluation of reforms
implemented across the Nigerian financial system, according to the apex Bank’s spokesperson, Hakama Sidi Ali, confirmed the significant improvements in Nigeria’s regulatory, supervisory and enforcement frameworks, particularly in combating money laundering, terrorist financing and proliferation financing.
A statement by Hakama Sidi Ali said that the development marked 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 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).
“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 AML/CFT regulations,
risk-based supervision and fit-and-proper assessments, expansion of compliance reporting and monitoring across remittance channels, bureaux de change and fintech platforms to improve traceability and transparency.”
Others, according to the statement, are enhanced inter-agency data-sharing and enforcement coordination between the CBN, NFIU, EFCC, and law-enforcement bodies, implementation of market governance tools, including the Foreign Exchange Code (FX Code) and Electronic Foreign Exchange Matching System (EFEMS).
“Together, these measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system.
“Nigeria’s removal from the grey list will yield tangible benefits for businesses and households alike including lowering compliance costs, improving access to international finance, and making cross-border transactions faster and more affordable. In 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 that FATF decision had reinforced the broader restoration of global confidence in Nigeria’s economic management.
It said that recent international assessments underscored “this 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 IMF’s 2025 Article IV Consultation highlighted improved reserve adequacy, greater transparency and reform agenda increasingly aligned with global standards.”
Hakama Sidi Ali quoted the CBN Governor, Olayemi Cardoso as saying that the FATF’s decision to remove Nigeria from the grey list is a strong affirmation of the reform trajectory and the growing integrity of the nation’s financial system.
“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.”
Nigeria now joins South Africa, Mozambique, and Burkina Faso as the latest African countries to achieve this milestone, reflecting broader progress across the continent.
The CBN vowed to be committed to strengthening 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.
