Global watchdog the Financial Action Task Force removes Nigeria from its grey list

NIGERIA has been removed from the Financial Action Task Force (FATF) grey list which includes countries involved in money laundering and terrorist financing after government action to address the concerns raised by the global watchdog.

Seen as an origin of funds for terrorist and money laundering activities, Nigeria was placed on the FAFT grey list in February 2023 over weak enforcement, poor inter-agency coordination and opaque financial practices. Yesterday, however, the country was delisted at FAFT's October 2025 plenary in Paris, the French capital.

President Bola Tinubu has described Nigeria’s removal from the list as a strategic victory for the nation’s economy and financial governance. He added that his administration treated the designation as a call to action rather than a setback as he directed key agencies to implement sweeping reforms.

FAFT removed Nigeria from the list following the country’s full implementation of a 19-point action plan aimed at strengthening its Anti-Money Laundering and Countering the Financing of Terrorism framework. Presidential spokesman Bayo Onanuga, said the development was not just a technical accomplishment but a strategic victory for Nigeria's economy and a renewed vote of confidence in the country's financial governance.

Under President Tinubu's directive, the Nigerian Financial Intelligence Unit (NFIU), in collaboration with the offices of the attorney-general, and the ministers of finance, justice, and interior, coordinated comprehensive legal, institutional and operational reforms to meet FATF standards. President Tinubu praised the NFIU chief executive Hafsat Bakari, and her team for their diligent and timely implementation of Nigeria’s commitments, earning international recognition for tackling serious financial crimes.

Ms Bakari said: “FATF has officially removed Nigeria from the list of jurisdictions under increased monitoring, commonly known as the grey list. This milestone marks a historic moment in Nigeria’s fight against serious financial crimes and underscores our commitment to global standards in combating money laundering, terrorist financing and proliferation financing.”

She added that key reforms that led to the delisting include the enactment and enforcement of the Money Laundering Prevention and Prohibition Act, 2022 and the Terrorism Prevention and Prohibition Act, 2022. Also helpful was the operationalisation of the Beneficial Ownership Register and stronger supervision of designated non-financial businesses and professions.

Ms Bakari noted that Nigeria had also enhanced the capacity of its intelligence and law enforcement agencies to detect, investigate and prosecute financial crimes, while deepening international cooperation and cross-border intelligence sharing. She lauded President Tinubu for his leadership, as well as the National Assembly, judiciary, and private sector stakeholders, urging all parties to sustain the reform momentum to maintain compliance with global standards.

At the same plenary, the FATF also removed South Africa, Mozambique and Burkina Faso from its grey list after acknowledging significant improvements in their financial integrity systems too. Analysts say Nigeria’s exit from the watchlist will ease cross-border transactions, attract capital inflows and strengthen investor confidence in the country’s financial sector.

President Tinubu added: “We will sustain the institutionalised reforms, deepen collaboration, and continue to build a financial system that Nigerians and the world can trust.” He stated that this latest development marked the beginning of a new chapter in Nigeria’s financial reform agenda.