Nigeria Removed from FATF Grey List After Three Years, Boosting Investor Confidence

Global financial watchdog, the Financial Action Task Force (FATF), has officially removed Nigeria from its grey list, marking a significant milestone in the country’s anti-money-laundering and counter-terrorism financing reforms.

The announcement, made on Friday, ends nearly three years of enhanced monitoring and reaffirms global confidence in Nigeria’s financial integrity. Alongside Nigeria, South Africa, Burkina Faso, and Mozambique were also delisted after implementing key regulatory and institutional improvements.

Nigeria and South Africa were added to the grey list in February 2023, Mozambique joined in October 2022, while Burkina Faso had been under monitoring since February 2021.

Why Nigeria’s Removal Matters

Nigeria’s removal from the FATF grey list is expected to boost investor confidence, ease cross-border transactions, and strengthen capital inflows.

Countries on the grey list face stricter compliance checks, leading to higher transaction costs and slower financial flows. Now, Nigerian banks and businesses can expect faster, cheaper international transactions, especially in remittance inflows averaging $20 billion annually.

Finance Minister Wale Edun welcomed the decision, describing it as a “vote of confidence” in Nigeria’s reform agenda.

“This development reinforces trust in our economy and the integrity of our financial systems,” Edun said. “It will ease international transactions, attract more foreign investments, and strengthen the foundations for sustainable economic growth and job creation.”

The move is expected to improve Nigeria’s attractiveness to foreign investors, particularly in sectors such as energy, technology, and manufacturing, where compliance risks had discouraged new entrants.

Analysts also predict that improved investor sentiment could support the naira, encourage capital inflows, and enhance government fiscal and monetary reforms.

What the FATF Grey List Means

The FATF Grey List identifies countries that have strategic deficiencies in their anti-money-laundering (AML) and counter-terrorist financing (CFT) systems. While inclusion on the list is not a sanction, it subjects countries to increased monitoring and reputational risk, often deterring foreign investment.

Being removed signifies that Nigeria has addressed its strategic deficiencies and now aligns with international standards for combating financial crimes.

Earlier in 2025, the CEO of the Nigerian Financial Intelligence Unit (NFIU), Ms. Hafsat Bakari, had projected that Nigeria would exit the list by year-end. She confirmed that FATF’s approval of Nigeria’s fifth progress report marked a significant achievement toward this goal.

Bakari emphasized that the development demonstrates Nigeria’s commitment to transparency, accountability, and global compliance standards, strengthening its image as a trustworthy financial hub.

Key Takeaways

Focus Keyphrase: Nigeria removed from FATF grey list
Nigeria, South Africa, Mozambique, and Burkina Faso were delisted on October 24, 2025.
The move improves cross-border payments, foreign investments, and economic stability.
FATF praised Nigeria’s progress on AML/CFT frameworks and institutional reforms.
The delisting is a major win for Nigeria’s financial credibility and global reintegration.