FATF Removes Nigeria from Global Financial Watchlist After Major Anti-Money Laundering Reforms

Nigeria has officially been delisted from the Financial Action Task Force (FATF) “grey list,” marking a major milestone in the country’s ongoing efforts to strengthen its anti-money laundering and counter-terrorist financing framework.

The decision was announced at the FATF October 2025 plenary held in Paris, France, where member nations agreed that Nigeria had successfully addressed the strategic deficiencies identified when it was placed under increased monitoring in February 2023.

According to FATF’s public statement, Nigeria demonstrated significant progress in implementing key reforms that improved financial transparency, enhanced enforcement mechanisms, and promoted inter-agency cooperation. The reforms were carried out in partnership with the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).

Among the measures credited for Nigeria’s removal from the list are:

• The enactment and enforcement of new anti-money laundering and counter-terrorism laws;

• Operationalisation of a beneficial ownership register to improve corporate transparency;

• Strengthened supervision of designated non-financial businesses and professions;

• Enhanced capacity of financial intelligence and law enforcement agencies; and

• Broader cooperation with international partners to curb illicit financial flows.

Director and Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, said the delisting reflected Nigeria’s “unwavering commitment to global financial integrity and reform.” She noted that the country’s coordinated effort across ministries, security agencies, and financial regulators ensured successful compliance with FATF’s recommendations.

“This achievement demonstrates Nigeria’s resolve to align with international standards and protect its financial system from criminal abuse,” Bakari said in a statement released on Friday. “Our institutions have strengthened their capacity to detect, investigate, and prosecute financial crimes, and we remain committed to sustaining these reforms.”

President Bola Tinubu also commended the FATF’s decision, describing it as a “validation of Nigeria’s transparency reforms and the collective effort of multiple agencies to restore confidence in the nation’s financial system.”

Economic analysts say the removal from the FATF watchlist will boost investor confidence, ease international transactions, and improve Nigeria’s reputation in the global financial market. It is also expected to enhance the country’s access to foreign direct investment, development funding, and cross-border partnerships.

At the same plenary, FATF also removed South Africa, Mozambique, and Burkina Faso from the grey list, acknowledging their respective progress in strengthening anti-financial crime frameworks.

Nigeria’s delisting comes after two years of rigorous reform implementation and external assessments, signaling a renewed global confidence in the nation’s financial governance and commitment to combatting illicit flows.