Nigeria Exits EU High-Risk Financial List After Reforms

Nigeria just earned a major vote of confidence from the international financial community, marking a turning point for Africa's largest economy.

The country officially exited the Financial Action Task Force Grey List in October 2025 and was removed from the European Union's high-risk countries list in January 2026. These listings had previously flagged concerns about money laundering and terrorism financing controls.

The double delisting came after Nigeria launched sweeping financial integrity reforms starting in 2023. Government agencies, law enforcement, the judiciary, and private sector leaders worked together to strengthen the country's anti-money laundering framework and improve financial transparency.

Hafsat Bakari, who leads the Nigerian Financial Intelligence Unit, credited the success to coordinated efforts across multiple government institutions. "This milestone underscores our commitment to upholding global standards while reinforcing international confidence in Nigeria's financial system," she said.

The reforms included better supervision of financial and non-financial sectors, improved corporate transparency, and stronger prosecution of financial crimes. The Federal High Court played a key role by delivering timely judgments and imposing meaningful penalties that deterred illicit financial activity.

International cooperation also improved significantly, with Nigeria facilitating mutual legal assistance and helping recover stolen assets held abroad. These concrete actions demonstrated to global watchdogs that the country's reforms were genuine and sustainable.

The Ripple Effect

Nigeria's upgraded status will have far-reaching benefits for its 200 million citizens. Banks and businesses will face fewer restrictions when conducting international transactions, making trade easier and less expensive.

Foreign investors who previously hesitated due to the high-risk designation can now engage with greater confidence. This could accelerate investment in Nigeria's technology sector, manufacturing, and infrastructure projects that create jobs.

The delisting also sets a powerful example for other African nations working to strengthen their financial systems. It proves that comprehensive, coordinated reforms can achieve results recognized by the world's toughest financial regulators.

Nigeria is now preparing for its next evaluation while building on these gains. The country has shown that sustained commitment to reform can transform international perceptions and open new doors for economic growth.

After years of disciplined work, Nigeria has turned a corner on financial transparency, and the future looks brighter for its economy.