Lagos, Oct. 27, 2025 – The global watchdog, the Financial Action Task Force (FATF), announced on Friday that it has removed Nigeria from its grey list.
The gesture marks the end of nearly three years under enhanced monitoring and signaling renewed investor confidence in the country’s financial system.
Nigeria was delisted alongside South Africa, Burkina Faso, and Mozambique following demonstrable progress in strengthening anti–money laundering and counter–terrorist financing frameworks.
South Africa and Nigeria were added to the list in February 2023.
The decision represents a major confidence boost for Nigeria’s economy and banking system.
Countries on the FATF grey list typically face higher costs and compliance hurdles in cross-border transactions, as global financial institutions increase scrutiny.
With its removal, Nigeria can now expect smoother and cheaper international financial flows, including remittances that average about $20 billion annually.
Finance Minister Wale Edun described the development as a “vote of confidence in Nigeria’s reform efforts,” noting that it “reinforces confidence in our economy and the integrity of our financial systems.”
He added that the move would “ease cross-border transactions, improve capital flows, and strengthen the foundations for sustainable economic growth and job creation.”
Analysts expect the decision to improve investor sentiment, particularly across energy, technology, and manufacturing sectors, where compliance concerns had deterred foreign investors.
The improved perception could also support the naira and enhance foreign direct investment inflows. (Commercio Partners)
