Nigeria has been removed from the Financial Action Task Force's grey list following significant progress in its anti-money laundering and counter-terrorism financing efforts. The global watchdog announced the decision at its October 2025 plenary, praising improvements in inter-agency coordination and risk-based supervision. Experts view this as a boost for foreign investment and financial integrity.
The Financial Action Task Force (FATF) announced at its October 2025 plenary that Nigeria had addressed strategic deficiencies identified in its earlier evaluation, leading to the country's removal from the grey list of jurisdictions under increased monitoring. Nigeria was first placed on the list in February 2023, which intensified scrutiny from international financial institutions.
This milestone reflects Nigeria's efforts to strengthen its anti-money laundering and counter-terrorism financing (AML/CFT) framework, including enhanced implementation across financial and non-financial sectors. Key improvements include better inter-agency coordination among bodies like the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
Iguehi Onokevbagbe, a Certified Anti-Money Laundering Specialist and former in-house counsel at the CBN, described the delisting as “a testament to Nigeria’s sustained policy commitment and institutional reforms.” She highlighted tangible progress in aligning national systems with global standards, noting it signals to international partners and investors that Nigeria is bolstering its financial system's integrity.
Onokevbagbe emphasized enhanced data sharing, improved customer due diligence, and technology-driven monitoring systems. The focus on risk-based supervision has been crucial in closing enforcement gaps. In her recent paper, “Addressing Illicit Financial Flows in Nigeria: The Role of AML/CFT/CPF Frameworks,” she examined regulatory compliance and financial integrity.
While celebrating the achievement, Onokevbagbe warned against complacency. “Sustaining FATF compliance requires continuous investment in institutional capacity, technological innovation, and transparency in enforcement,” she said. “Financial integrity is not a one-off reform — it’s a culture that must be embedded within both the public and private sectors.”
Nigeria's success offers a model for other developing economies, demonstrating that a coordinated, data-driven approach can yield results in complex environments. The delisting positions the country to attract more foreign investment and restore confidence in its regulatory system, though experts stress the need to institutionalize reforms to prevent regression.