Nigeria Secures FATF Delisting After Major Reforms Strengthen Anti-Money Laundering And Terror Financing Framework

 

Nigeria has officially been removed from the Financial Action Task Force (FATF) grey list following a comprehensive reform process that strengthened the nation’s framework against money laundering and terrorism financing. The announcement was made during the FATF October 2025 Plenary in Paris, France, signaling a significant turnaround in Nigeria’s global financial reputation.

President Bola Tinubu hailed the delisting as a moment of national pride and a validation of the country’s determination to reform its financial system. Describing it as a “strategic victory for the Nigerian economy,” Tinubu emphasized that the achievement reflected the country’s renewed commitment to transparency, accountability, and global cooperation in the fight against illicit financial flows.

Nigeria had been placed on the FATF grey list in February 2023 due to concerns over weak enforcement mechanisms, insufficient coordination among relevant agencies, and the prevalence of opaque financial practices. Rather than treat the development as a setback, the Tinubu administration regarded it as a challenge to rebuild trust and strengthen compliance with global standards.

According to the President, his government took immediate action to address the FATF’s concerns by implementing a 19-point action plan that touched on every critical aspect of financial governance. Under his directive, the Nigerian Financial Intelligence Unit (NFIU) spearheaded the reform efforts in partnership with the Office of the Attorney-General, as well as the Ministries of Finance, Justice, and Interior.

Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated that the delisting was a culmination of “tireless work and coordinated reforms” that repositioned Nigeria as a credible player in the global financial system. He added that the achievement was a powerful signal to international investors and development partners that Nigeria’s financial institutions were now aligned with global best practices.

NFIU Director and Chief Executive Officer Hafsat Bakari described the development as “a historic moment that reaffirms Nigeria’s resilience and unity in reform.” She confirmed the FATF’s decision to remove Nigeria from the list of jurisdictions under increased monitoring, commending the extensive inter-agency collaboration that led to the result.

According to Bakari, several key measures paved the way for Nigeria’s removal from the watchlist. These included the enactment and implementation of the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022. Another major milestone was the operationalisation of the Beneficial Ownership Register, which enhances transparency in corporate ownership and prevents the misuse of anonymous entities for illicit purposes.

The reforms also prioritized stricter supervision of designated non-financial businesses and professions, ensuring compliance across sectors such as real estate, law, and accounting. Furthermore, Nigeria expanded its capacity to detect, investigate, and prosecute financial crimes through enhanced training and technology upgrades across law enforcement and intelligence agencies.

Bakari noted that improved international cooperation and stronger intelligence sharing between Nigeria and global counterparts played a crucial role in meeting FATF standards. She expressed gratitude to President Tinubu for his unwavering support and to the National Assembly, judiciary, and private sector for their contributions to the reform process. She also urged continued vigilance to prevent any future lapses that could undermine Nigeria’s hard-earned progress.

Financial analysts have welcomed the development, predicting that the exit from the FATF watchlist will significantly improve Nigeria’s economic outlook. They expect the move to ease cross-border transactions, attract foreign investments, and boost the confidence of international financial institutions in dealing with Nigerian entities. By being delisted, Nigeria now re-enters the global financial ecosystem without the added scrutiny that previously made transactions more cumbersome and costly.

At the same Paris plenary, FATF also announced the delisting of South Africa, Mozambique, and Burkina Faso, recognizing their respective efforts in tightening financial oversight and improving anti-money laundering measures. This simultaneous removal of several African countries is seen by experts as an encouraging sign of progress across the continent in combating illicit financial flows.

President Tinubu reaffirmed that Nigeria would not relent in sustaining the reforms that made this victory possible. He stated that his administration is determined to institutionalize transparency and strengthen regulatory frameworks to ensure that the country remains compliant with international standards. “We will sustain the institutionalised reforms, deepen collaboration, and continue to build a financial system that Nigerians and the world can trust,” he said.

The President’s statement reflects a broader ambition to anchor Nigeria’s economic growth on integrity-driven financial governance. As the country celebrates this major achievement, policymakers and stakeholders are already looking ahead to maintaining the momentum and ensuring that Nigeria’s financial system remains credible, resilient, and globally respected.

With its removal from the FATF grey list, Nigeria has turned a challenging chapter into an inspiring success story, reaffirming its place as a leading economic force committed to clean and transparent financial practices.