For over a decade, Nigeria bore a costly global label as a “high-risk” country for money laundering and terrorism financing, a stigma that slowed payments, spiked costs, and scared away billions in foreign investment. That perception is finally changing. In a landmark move, the European Union announced Nigeria’s removal from its high-risk list, signaling renewed international confidence in Africa’s largest economy. Analysts say this is the clearest endorsement yet of the Central Bank of Nigeria’s (CBN) bold reforms.
At the heart of the turnaround are sweeping foreign exchange (FX) reforms. The CBN unified multiple exchange rates into a single, market-driven system and introduced the Electronic Foreign Exchange Market Surveillance System (EFEMS) to monitor transactions in real time. By replacing opacity with transparency, the central bank not only stabilized the FX market but also addressed one of the biggest red flags for international regulators assessing money laundering and terrorist financing risks.
Compliance discipline across the financial sector has also been crucial. Nigerian banks, fintechs, and remittance operators tightened know-your-customer (KYC) processes, verified beneficial ownership, and implemented continuous transaction monitoring. Beyond individual institutions, stronger collaboration between the CBN, Nigerian Financial Intelligence Unit, and law enforcement agencies ensured enforcement was coordinated, leaving little room for malpractice and enhancing credibility in global finance circles.
The EU’s decision has immediate practical benefits for ordinary Nigerians and businesses alike. Enhanced due diligence requirements on EU transactions will be lifted, speeding up cross-border payments, reducing costs for exporters and SMEs, and improving remittance flows from the diaspora. As CBN Governor Olayemi Cardoso highlighted, the move restores confidence, strengthens Nigeria’s financial system, and could unlock over $30 billion in potential capital inflows.
Globally, the move has resonated with investors and institutions. The World Bank has upgraded Nigeria’s 2026 growth forecast, while Moody’s and Fitch have revised the country’s ratings outlook upward. Yet, the CBN cautions that maintaining transparency and compliance is crucial. After years of being viewed with skepticism, Nigeria is finally positioning itself as a reliable partner in international finance—a hard-earned shift that underscores how disciplined reforms can transform both perception and reality.
source: The sun