By Erewunmi Peace

The Financial Action Task Force (FATF) has officially removed Nigeria from its “grey list” — a global watch list of countries under increased monitoring for financial crimes such as money laundering and terrorism financing. The decision, announced after the FATF plenary meeting in Paris on October 24, 2025, marks a major milestone in Nigeria’s efforts to strengthen its financial integrity systems.

FATF, the international standard-setting body for combating financial crime, confirmed that Nigeria has made significant progress in implementing reforms to improve anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. The agency commended the Nigerian government for demonstrating sustained political commitment and technical compliance with its global standards.

The removal follows months of collaborative reforms led by the administration of President Bola Ahmed Tinubu, including measures to enhance financial transparency, improve inter-agency coordination, and strengthen the operational capacity of the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU).

Reacting to the development, President Tinubu described the FATF’s decision as “a reflection of Nigeria’s determination to build a transparent, secure, and globally trusted economy.” He credited the achievement to the dedication of Nigerian institutions and the support of international partners.

The President also reiterated his administration’s commitment to ensuring that Nigeria remains compliant with global financial standards to attract investment and foster economic growth.

Experts say the delisting will restore confidence in Nigeria’s financial system, reduce compliance costs for businesses, and encourage foreign investment inflows.
According to Reuters and the Financial Times, Nigeria’s removal from the grey list places it alongside South Africa, which was also delisted at the same plenary session.

The FATF’s grey list comprises countries identified as having strategic deficiencies in combating money laundering and terrorist financing but actively working with the task force to address them. Nigeria was first placed on the list in February 2023.

With this new status, Nigeria is no longer under the enhanced monitoring regime but will continue to be evaluated periodically to ensure sustained compliance.

The move has drawn commendations from financial experts, the Central Bank of Nigeria, and international observers who noted that the reforms could lead to improved credit ratings and stronger investor confidence.

FATF is expected to release a detailed communiqué summarizing the plenary’s outcomes, including the formal documentation of Nigeria’s delisting.