What the FATF Grey List Exit Means for Nigeria
Nigeria’s removal from the Financial Action Task Force (FATF) grey list marks a pivotal reclassification in the country’s global financial standing. The decision, announced by FATF last Friday, signals that Nigeria has substantially addressed deficiencies in its anti-money laundering and countering financing of terrorism (AML/CFT) frameworks. Experts say the delisting is more than ceremonial; it represents a credible restoration of trust in Nigeria’s financial system and a practical unlock for cross-border transactions.
The FATF grey list is typically associated with heightened scrutiny and higher perceived country risk. When a country is listed, foreign investors may reassess exposure, international banks may tighten due diligence or curtail correspondent banking, and multilateral lenders could delay funding. In short, the costs of doing business abroad increase until reforms take hold. Nigeria’s exit, therefore, is expected to lower some of these frictions and attract greater international financial engagement.
Key Voices: Why Experts See a Positive Trajectory
Finance scholar and capital markets expert, Prof. Uche Uwaleke, described the delisting as welcome and timely. He noted that FATF removal serves as a global trust signal, potentially improving access to finance, trade, and investment. The professor explained that as country risk perception falls, Nigeria could see higher foreign direct investment, cheaper debt capital for domestic issuers, and tighter spreads on government securities. He cautioned, however, that delisting is not a finish line; sustained reforms and robust implementation are essential to stay out of the grey list in the long run.
Industry leaders chiming in from the private sector echoed similar optimism. Olugbenga Agboola, co-founder and CEO of Flutterwave, called the delisting a “massive win” for the Nigerian economy. He argued it would lower remittance and cross-border costs and accelerate payments to and from Nigeria, reinforcing confidence in Nigeria’s financial leadership and transparency.
Public and Institutional Reactions: A Broader Confidence Reset
The Central Bank of Nigeria (CBN) framed the delisting as a tangible benefit to businesses and households. In a statement, the CBN highlighted potential reductions in compliance costs, improved access to international finance, and faster cross-border settlements. The bank also tied the improvement to a broader narrative of restored global confidence in Nigeria’s economic management, noting recent upgrades in Nigeria’s rating outlook by Moody’s and Fitch and alignment with IMF expectations for 2025.
CBN Governor Olayemi Cardoso emphasized the need to sustain reforms, stressing that the country’s gains must be consolidated to maintain financial stability and global credibility. FATF President Elisa de Anda Madrazo congratulated Nigeria for demonstrating political will and inter-agency cooperation over the past two years, pointing to stronger governance, improved transparency, and better supervision in non-financial sectors as critical factors behind the delisting.
What Comes Next: Sustaining Reform and Growth
While the removal from the grey list is celebratory, Nigerian officials and experts agree that the work is not finished. The objective now is to ensure that AML/CFT reforms are deeply embedded—through effective legal, institutional, and operational implementations that permanently keep Nigeria off the FATF grey list. Nigeria remains a member of GIABA, the West African body affiliated with FATF, which places continued emphasis on regional collaboration to curb money laundering, terrorist financing, and related financial crimes.
GIABA’s leadership had previously signaled cautious optimism about de-listing, underscoring progress in investigations and prosecutions, greater transparency of beneficial ownership, and stronger supervision in key sectors like real estate. With the international community’s trust gradually restored, Nigerian businesses can anticipate smoother trade settlements, more predictable access to foreign exchange, and an environment more attractive to both local and international investors.
Conclusion
Nigeria’s exit from the FATF grey list is a meaningful milestone on a broader reform journey. It signals improved governance and AML/CFT standards, with the potential to unlock capital, lower borrowing costs, and accelerate growth. The real test lies in maintaining momentum and demonstrating enduring, tangible compliance across all sectors. If Nigeria sustains these reforms, the delisting could become a lasting stepping stone toward deeper regional leadership and a more resilient economy.
