FATF Grey List Exit Saves Nigeria $30bn in Investment Losses

Nigeria’s exit from the Financial Action Task Force (FATF) saved the country from losing over $30 billion investment that resulted from lack of investors’ confidence.

Nigeria entered the FATF grey list in February 2023 due to deficiencies in anti-money laundering and counter-terrorism financing measures.

After addressing a 19-point action plan, including an on-site visit in August 2025, the FATF delisted Nigeria at its plenary meeting in Paris.

The removal enhances Nigeria’s financial credibility, potentially restoring investor confidence and easing international transactions. President Tinubu hailed it as a milestone for economic reform and global trust.

Nigeria’s exit from the Financial Action Task Force (FATF) grey list has restored global confidence in the country’s financial system

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso made the disclosure on Friday at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.

Describing the exit as “one of the most significant achievements this year,” the CBN governor explained that Nigeria’s removal from the grey list resulted from a coordinated nationwide effort led by the Federal Government, with inputs from the CBN.

He said, “Nigeria’s grey-listing carried a significant cost: countries in this category typically experience a 7.6 per cent of GDP drop in capital inflows in the first year, for Nigeria, that translates to more than $30 billion in potential investment. Exiting the list, therefore, signals a major restoration of confidence and eases compliance frictions for correspondent banks.”

Cardoso explained that Nigeria implemented a comprehensive set of reforms and institutional enhancements to address the deficiencies highlighted by FATF during its on-site assessment.

These reforms, he said, involved strengthening the supervision of financial institutions, improving the quality and consistency of reporting for suspicious and cross-border transactions, and deepening intelligence-sharing among relevant agencies.

He added that the deployment of modern governance tools, including the Electronic Financial Evaluation Monitoring System (EFEMS) and the Foreign Exchange (forex) Code, played a crucial role in tightening oversight and ensuring greater transparency across the financial system.