Nigeria Exits Money Laundering Grey List After Reforms

Nigeria just achieved a major economic milestone that could transform its financial future. The country has been removed from the Financial Action Task Force grey list, a designation that had discouraged foreign investment and increased borrowing costs since February 2023.

The removal follows sustained reforms across multiple government agencies to strengthen anti-money laundering and counter-terrorism financing measures. Nigeria will also exit the European Union's high-risk countries list at the end of January 2026.

"This milestone underscores our commitment to upholding global standards while reinforcing international confidence in Nigeria's financial system," said Hafsat Bakari, CEO of the Nigerian Financial Intelligence Unit. The achievement required coordination between dozens of agencies, from the Central Bank to law enforcement.

The impact of grey-listing had been significant. A 2021 International Monetary Fund report found that grey-listed countries experienced large reductions in capital inflows, making it harder to attract the foreign investment needed for economic growth.

Nigeria's journey off the list involved strengthening everything from corporate transparency systems to cross-border cash smuggling detection. Law enforcement agencies improved their investigation and prosecution of financial crimes, while regulatory bodies enhanced their supervision of financial markets.

The Federal Ministry of Justice secured important convictions and facilitated the recovery and repatriation of illicit assets. Courts expedited cases and imposed appropriate sanctions, demonstrating that Nigeria's reforms went beyond paper commitments.

The Ripple Effect

Nigeria's success sends a powerful message across Africa. Five other African nations, including South Africa and Tanzania, were also removed from the EU's high-risk list, showing that sustained reform efforts can restore international confidence.

For Nigeria's 200 million citizens, the delisting means easier access to international financial services and reduced costs for businesses conducting cross-border transactions. Foreign companies that had hesitated to invest can now enter the market with greater confidence.

The breakthrough also validates a coordinated approach to complex national challenges, proving what's possible when government agencies work together toward a common goal.

Nigeria now faces its third mutual evaluation in 2027, an opportunity to demonstrate that these reforms are permanent improvements rather than temporary fixes. The country has shown the world that commitment to international standards pays off.