Nigeria’s removal from the Financial Action Task Force grey list has restored global confidence in the country’s financial system and shielded the economy from losing more than thirty billion dollars in potential investment inflows. The announcement was made in Lagos during the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria, where the central bank highlighted the development as one of the most significant milestones of the year.
According to the apex bank, exiting the grey list was the outcome of a coordinated national effort led by the Federal Government with strong input from regulatory institutions. The bank explained that remaining on the grey list carried major economic risks, noting that countries placed in this category typically experience a sharp decline in capital inflows equivalent to more than seven percent of GDP in the first year. For Nigeria, this translated to over thirty billion dollars in potential investment losses. The bank added that the delisting not only restores confidence but also reduces the compliance frictions that international correspondent banks often impose on grey-listed countries.
The central bank revealed that Nigeria addressed the deficiencies identified by the global financial watchdog through reforms aimed at strengthening supervision of financial institutions, improving reporting of suspicious transactions, deepening cross-agency intelligence sharing and ensuring better monitoring of cross-border financial movements. Modern governance tools such as the Electronic Financial Evaluation Monitoring System and the Foreign Exchange Code were also deployed to improve oversight and enhance transparency across the financial system.
The delisting came after the global body announced in October that Nigeria had been removed from its grey list following an on-site assessment. The decision followed nearly three years of intense scrutiny and placed Nigeria alongside other countries that were removed after demonstrating stronger controls against money laundering and terrorist financing. The development has been widely viewed as a confidence boost for the country’s financial system and its broader economic outlook.
The exit has already contributed to improved sentiment in the foreign exchange market, where the national currency showed early signs of stability and slight appreciation against the dollar. The Presidency also welcomed the development, describing it as evidence of Nigeria’s commitment to global financial transparency.
The global financial watchdog, which sets international standards for combating money laundering and terrorist financing, is regarded as a key determinant of investor perception. For MSMEs across the continent, the delisting enhances Nigeria’s attractiveness as a trading and investment hub, reduces cross-border transaction friction and creates a more predictable environment for accessing international finance, partnerships and supply chains.
