EXPLAINER: What delisting from FATF Grey List really means for Nigeria’s economy

Nigeria, on Friday, October 24, 2025, got delisted from the Financial Action Task Force (FATF) global money laundering watch list, signalling a major stride in the country’s financial reform efforts and global credibility.

Ripples Nigeria reports that Nigeria was placed on the FATF grey list in February 2023 due to strategic deficiencies in its anti-money laundering and counter-terrorist financing systems.

These gaps raised concerns about the country’s ability to prevent illicit financial flows and meet global standards.

However, since the coming on board of President Bola Ahmed Tinubu’s administration, the country embarked on a successful and timely completion of a FATF Action Plan, marking over two years of sustained effort, reform and inter-agency coordination aimed at strengthening the country’s Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework.

At the center of the action plan was the Nigerian Interministerial Committee on Anti-Money Laundering/Countering the Financing of Terrorism/Proliferation Financing (AML/CFT/PF) chaired by the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Minister of Interior, Olubunmi Ojo, as alternate chairs.

Edun, alongside others oversaw the implementation of critical reforms in Nigeria’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework.

These reforms addressed FATF’s concerns about strategic deficiencies and helped Nigeria meet the conditions of its Action Plan.

In addition, Edun emphasised Nigeria’s growing commitment to “transparency, integrity, and accountability” in financial governance.

Under his leadership, the Ministry of Finance worked closely with regulatory bodies like the Nigerian Financial Intelligence Unit (NFIU) to strengthen compliance and reporting standards.

He played a pivotal role in fostering cooperation among key institutions — including the Central Bank of Nigeria, Economic and Financial Crimes Commission (EFCC), and NFIU — to ensure unified efforts in combating financial crimes. This collaboration was crucial in demonstrating Nigeria’s political will and operational capacity to FATF evaluators.

Speaking on Nigeria’s efforts towards the delisting, President of FATF, Elisa de Anda Madrazo, said Nigeria has demonstrated strong political will and inter-agency collaboration in combating financial crimes over the last two years under President Bola Tinubu, since the country was placed on the grey list.

“Nigeria has demonstrated strong political commitment to fighting financial crimes. However, let me be clear: it is not only that we have seen a political commitment to exit the grey list… It is because we have seen the change and the political measures put in place.

“In Nigeria, we have seen that political commitment that has translated to the change we have seen on the ground. After sustained efforts of just over two years, Nigeria has demonstrated a stronger capacity – this is fundamental – to investigate and prosecute. This is crucially helping Nigeria to focus resources to fight crimes that harm its community the most, such as drug trafficking and terrorist financing.”

Th delisting came from implementing of government-wide policy reforms, stronger inter-agency coordination and cooperation, which led to important enhancement in the transparency of the beneficial ownership structure.

A well taught-out action plan and the political commitment led the plenary to agree that Nigeria has fully addressed the action plan to warrant an exit of the grey list.

While urging the Nigeria government to continue its good work for the benefit of the Nigerian people, Madrazo particularly noted the presence of three Nigerian ministers, including Edun, at the week-long events which demonstrated the country’s commitment to combating financial crimes and other illicit flows.

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On her part, the NFIU’s Director/Chief Executive Officer, Ms Hafsat Abubakar Bakari called on stakeholders to sustain the efforts and ensure that Nigeria maintains its leading position in the global network and acts as a beacon for effective measures to protect and safeguard global prosperity and security.

Beyond the semantics and speeches, the gains of the delisting are plentiful for Nigeria, as the development will signal a boost in confidence from investors, both local and international.

While on the grey list, Nigerian banks and businesses faced additional compliance checks and restrictions when transacting internationally. But this is no more, as they’ll now have easier access to global financial systems.

The delisting restores Nigeria’s credibility in the eyes of international investors, lenders, and financial institutions. Being on the FATF grey list made Nigeria appear a fertile ground for money laundering and terrorism financing. It discouraged investment and raised the cost of doing business.

With the removal, things have changed, as the country is now viewed as a safer and more transparent environment for investment, likely leading to increased foreign direct investment (FDI) and portfolio inflows.

The FATF delisting positively influences Nigeria’s sovereign credit ratings. The Nigeria FATF grey list removal reflects improved governance and transparency. It would help the country negotiate better borrowing terms on international loans and Eurobond issuances easing debt servicing pressures.

In a speech read on behalf of Nigeria, Edun said Nigeria was honoured to be allowed to contribute its expertise and experience to the global fight against serious crimes that threatened the shared security and prosperity of the world.

He said Nigeria was grateful to international partners, including the governments of France, Germany, the United Kingdom, and the United States of America, as well as the European Commission, for their steadfast support throughout the process.

Speaking on efforts to ensure that Nigeria sustains the momentum, he noted that “With the resolve and dedication of the men and women back home, we will continue to work towards a safer and more secure Nigeria,” the minister added.

By: Babajide Okeowo

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