Nigeria’s exit from FATF grey list will increase investor confidence, says SEC

Nigeria’s anticipated removal from the Financial Action Task Force (FATF) grey list is expected to significantly enhance investor confidence and attract foreign capital, according to Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC). Speaking at the 2025 Capital Market Committee (CMC) meeting in Lagos, Agama stressed that delisting will bolster Nigeria’s global financial credibility and eliminate a key reputational risk discouraging international investors.

The FATF grey list identifies countries with deficiencies in countering money laundering and terrorist financing. Nigeria’s ongoing reforms, led by a multi-agency task force in coordination with the Nigeria Financial Intelligence Unit (NFIU), aim to secure its inclusion on the FATF white list by the end of May 2025. This move demonstrates strong political will and institutional alignment toward international compliance standards and financial system integrity.

Beyond regulatory improvements, the Nigerian capital market experienced strong performance in 2024, with the SEC approving ₦3.68 trillion in new issues—₦3.62 trillion in equities and ₦59.82 billion in fixed income. Between January and April 2025 alone, ₦446.38 billion in new offerings were cleared. These figures point to sustained investor activity and growing confidence, especially in equity markets.

Mergers and acquisitions (M&A) also showed notable progress. In 2024, 11 M&A transactions worth ₦320.36 billion were approved, including a ₦103.7 billion stake acquisition in Guinness Nigeria Plc. Additionally, several restructurings, share consolidations, and takeovers were processed. In 2025 so far, three major corporate transactions valued at ₦38.53 billion have been approved, signaling ongoing strategic movements within Nigeria’s capital ecosystem.

The asset management sector also recorded growth, with mutual funds reaching 184 in number and a total net asset value of ₦3.84 trillion. Privately managed portfolios rose to 454 vehicles with ₦4.69 trillion in assets. The SEC is supporting this momentum through regulatory initiatives, including the CBN recapitalization program that has drawn 12 new bank issuance applications worth ₦2.02 trillion. Agama reaffirmed the Commission’s commitment to a transparent, liquid, and efficient market aligned with Nigeria’s broader economic objectives.

Source: The Guardian