CBN Reforms Propel Nigeria Off EU High-Risk List, Boosting Global Financial Confidence
Nigeria has officially been removed from the European Union’s high-risk list for money laundering and terrorism financing, a landmark achievement that validates years of financial-sector reforms led by the Central Bank of Nigeria (CBN). The decision signals a shift from weak oversight and opaque foreign exchange practices toward a more transparent and rules-based financial system. For experts, the EU’s move confirms the growing effectiveness of Nigeria’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework and rising confidence in the country’s economic governance.
The implications for Nigeria’s economy are far-reaching. Beyond regulatory recognition, delisting opens doors to increased foreign investment, smoother cross-border payments, and stronger correspondent banking relationships. Over the past two years, reforms such as the unification of the exchange rate, enhanced forex market transparency, and stricter monitoring of financial flows have reshaped the nation’s financial landscape. Analysts view the EU’s decision as a major vote of confidence, particularly at a time when global capital is highly sensitive to governance, compliance, and transparency standards.
CBN Governor Olayemi Cardoso emphasized that policy measures—including the deployment of the Electronic Foreign Exchange Market Surveillance System (EFEMS) and strengthened risk-based supervision of banks—have strengthened Nigeria’s resilience to external shocks like volatile oil prices and global credit shifts. “We will continue to provide forward guidance, protect market integrity, and leverage technology to improve decision-making,” Cardoso said. The reforms have also improved the country’s capacity to identify beneficial ownership, ensuring financial institutions can track who controls assets and accounts, which has been critical in lifting Nigeria off the EU’s high-risk register.
Institutional coordination played a pivotal role in this success. Collaboration between the CBN, Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC) has improved compliance monitoring across banks, fintechs, and Bureau De Change operations. Enhanced risk-based supervision, stricter AML/CFT regulations, and inter-agency cooperation reduced transaction blind spots that were previously exploited for illicit financial flows. According to the Bank Customers Association of Nigeria, the delisting opens new opportunities for Nigerian banks in international dealings, strengthening the country’s global financial credibility.
Economically, exiting the EU high-risk list could reverse losses incurred during Nigeria’s earlier classification under FATF’s grey list, which reduced capital inflows by an estimated $30 billion in the first year. The World Bank now projects Nigeria’s 2026 growth at 4.4%, while the CBN expects 4.49%, reflecting confidence in ongoing structural reforms. As Nigeria celebrates this milestone, the challenge ahead is ensuring that compliance gains are sustained, regulatory frameworks remain robust, and the country continues to build trust in its financial system on the global stage.
source: Leadership