Nigeria Officially Removed from FATF Gray List Following Comprehensive AML/CFT Reforms

Nigeria has officially secured its removal from the Financial Action Task Force's (FATF) enhanced monitoring list, commonly known as the “gray list.” This significant regulatory milestone was formalized in October 2025, following the conclusion of the FATF Plenary Session held in Paris, France, between October 22 and 24, 2025. The delisting signifies the successful culmination of extensive efforts aimed at rectifying strategic deficiencies within the nation’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) frameworks.

The decision to remove Nigeria stems directly from the diligent execution of sweeping, comprehensive reforms mandated under the FATF monitoring regime. Crucial legislative advancements included the introduction and enforcement of two pivotal laws: the Money Laundering Prevention and Prohibition Act 2022 and the Terrorism Prevention Act 2022. Beyond statutory changes, the government prioritized bolstering coordination among various agencies and fully operationalizing the Beneficial Ownership Register. These operational improvements collectively enhanced the visibility and transparency of domestic financial transactions, a core requirement for international compliance.

Nigeria was initially placed on the gray list in February 2023, a consequence of identified systemic weaknesses, particularly concerning lax law enforcement and inadequate collaboration between governmental bodies. The arduous task of driving these necessary reforms fell primarily to key national institutions, including the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), and the Central Bank of Nigeria (CBN). During the recent Plenary Session, the FATF specifically acknowledged the country’s commendable pace in executing its comprehensive 19-point Action Plan according to the established timeline.

This regulatory triumph carries profound and tangible implications for Nigeria's economic landscape. Removing the gray list stigma is anticipated to significantly boost the confidence of global investors. This renewed trust is expected to act as a powerful catalyst, driving a substantial influx of Foreign Direct Investment (FDI), which had previously been hampered by increased scrutiny and complexity in cross-border financial dealings. Economic analysts suggest that achieving this status is vital for fostering long-term, sustainable growth, as it clearly signals to international partners that operational risks within the Nigerian jurisdiction have been substantially mitigated.

Beyond the foundational legislative changes, substantial focus was dedicated to enhancing the operational efficiency of Nigeria’s supervisory and enforcement bodies. Crucially, process-related data indicates a remarkable improvement: by the close of 2024, successful investigations into money laundering offenses saw a 40% increase when measured against the period preceding the commencement of enhanced monitoring. This quantifiable success underscores that deliberate efforts to harmonize the financial sector internally are successfully reshaping Nigeria’s global reputation.

The successful exit from the FATF gray list marks not just a technical compliance achievement but a strategic victory for Nigeria on the global stage. It validates the commitment of the government and key institutions to maintaining high standards of financial integrity and security, positioning the nation firmly as a dependable and robust participant in the international financial community, paving the way for greater economic integration and stability.