Nigeria Exits FATF Grey List, Reclaims Global Financia Credibility

Nigeria Exits FATF Grey List, Reclaims Global Financia Credibility

By Abbas Badmus,

Nigeria has been officially removed from the Financial Action Task Force (FATF) “grey list,” marking a major milestone in the nation’s ongoing fight against money laundering, terrorist financing, and related financial crimes.

The announcement was made at the FATF Plenary held in Paris, France, in October 2025, following two years of sustained reforms and compliance efforts by the Nigerian government and its institutions.

In a statement on Thursday, the Nigerian Financial Intelligence Unit (NFIU) described the delisting as a “historic moment” that reflects Nigeria’s restored global confidence and commitment to financial integrity.

Two Years of Intense Reforms

Nigeria was first placed on the FATF grey list in February 2023 due to identified deficiencies in its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.

Since then, the country has implemented a comprehensive 19-point Action Plan in collaboration with FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).

Among the key reforms were the enactment of the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022. Nigeria also operationalised a Beneficial Ownership Register to improve corporate transparency, strengthened law enforcement capacity to investigate complex financial crimes, and expanded cooperation with global intelligence networks.

Nigeria’s Delegation in Paris

Nigeria’s delegation to the FATF Plenary included the Attorney-General of the Federation and Minister of Justice, Minister of Finance and Coordinating Minister of the Economy, Minister of Interior, and the Director/Chief Executive Officer of the NFIU.

Speaking on behalf of the delegation, the Minister of Finance, Mr. Wale Edun, said Nigeria’s ambition was not limited to merely exiting the grey list, but to institutionalising lasting reforms.

“Our focus has been on driving reforms, enacting legislative enhancements and strengthening institutions to effectively counter money laundering and terrorist financing. For us, the Action Plan was not the ceiling, but the floor of our aspirations,” Edun stated.

A Vote of Global Confidence

Attorney-General Prince Lateef Fagbemi (SAN) lauded FATF for inviting Nigeria to join its Guest Jurisdictions Initiative, which allows the country—represented by the NFIU—to participate in FATF meetings and contribute to global policy discussions for one year.

He described the invitation as “a mark of international trust in Nigeria’s expertise and commitment to global financial standards.”

NFIU Commends Collective Efforts

The NFIU Director/CEO, Ms. Hafsat Abubakar Bakari, who coordinated the reform implementation, praised the collective national effort that made the milestone possible.

“Nigeria’s removal from the FATF grey list is a true test of our resilience, coordination and unwavering commitment to reform. This is not the end of our journey, but the beginning of a stronger, more transparent financial ecosystem,” she said.

Bakari expressed appreciation to President Bola Ahmed Tinubu GCFR for his leadership and strategic direction throughout the reform process, and to Vice President Kashim Shettima, who represented the President during the FATF assessment team’s visit to Nigeria.

She also acknowledged the support of the Federal Executive Council, the National Assembly, the Judiciary, and members of the Inter-Ministerial Committee on AML/CFT, as well as private sector and civil society stakeholders for their cooperation.

Africa Records Progress

In addition to Nigeria, FATF also announced the removal of Burkina Faso, Mozambique, and South Africa from its grey list, in what observers have described as a significant step for Africa’s financial credibility and integrity.

The NFIU congratulated the affected countries and reaffirmed Nigeria’s commitment to working closely with its regional partners to strengthen the fight against illicit financial flows across the continent.

“Nigeria’s success demonstrates what can be achieved through unity of purpose and collective resolve,” Bakari added. “We must sustain the momentum to ensure Nigeria remains a beacon of financial transparency and integrity.”