Nigeria Exits FATF Grey List: CBN Pledges to Deepen Financial Reforms and Boost Investor Confidence

The Central Bank of Nigeria (CBN) has pledged to strengthen ongoing financial reforms after Nigeria’s successful removal from the Financial Action Task Force (FATF) “grey list.” The apex bank said it would continue to prioritize compliance, innovation, and trust to ensure lasting financial stability and reinforce Nigeria’s reputation in the global financial system.

The FATF, a global watchdog for anti-money laundering (AML) and counter-terrorist financing (CFT), announced Nigeria’s exit from its grey list following a successful on-site evaluation of the country’s regulatory framework. The decision marks a major milestone for Nigeria’s financial sector, which has undergone significant reforms over the past two years. “The FATF’s decision to delist Nigeria is a strong affirmation of our reform trajectory and the growing integrity of our financial system,” CBN Governor Olayemi Cardoso said.

Nigeria’s removal from the grey list follows a coordinated national reform effort led by the Federal Government in collaboration with the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC). These efforts included tighter oversight of financial institutions, enhanced data sharing among agencies, and the introduction of governance tools such as the Foreign Exchange Code and the Electronic Foreign Exchange Matching System (EFEMS), aligning Nigeria more closely with global best practices.

Experts say the delisting is expected to translate into tangible economic benefits for Nigerian businesses and households. Reduced compliance costs, improved access to global finance, and faster cross-border transactions are among the immediate advantages. Over time, this could lead to smoother trade settlements, greater investor confidence, and stronger foreign exchange inflows—key drivers of Nigeria’s economic stability and growth.

Nigeria’s successful exit places it alongside South Africa, Mozambique, and Burkina Faso as African nations that have recently achieved FATF compliance milestones. The CBN reaffirmed its commitment to maintaining transparency and sound governance within the financial system, noting that sustained reforms will not only improve investor sentiment but also deepen financial inclusion and economic resilience across the country.

source: Nairametrics