Nigeria’s removal from the Financial Action Task Force (FATF) grey list has been hailed as a major milestone in the country’s efforts to strengthen its anti-money laundering and counter-terrorism financing (AML/CFT) framework.
The global watchdog announced at its October 2025 plenary that Nigeria had made significant progress in addressing strategic deficiencies identified during its earlier evaluation, leading to its removal from the list of jurisdictions under increased monitoring.
According to FATF, Nigeria demonstrated improved inter-agency coordination, risk-based supervision, and enhanced implementation of AML/CFT measures across the financial and non-financial sectors.
Commenting on the development, Iguehi Onokevbagbe, a Certified Anti-Money Laundering Specialist (CAMS) and former in-house counsel at the Central Bank of Nigeria, described the decision as “a testament to Nigeria’s sustained policy commitment and institutional reforms.”
“Nigeria’s exit from the FATF grey list reflects the tangible progress made in aligning national AML/CFT systems with global standards,” Onokevbagbe said. “It’s not only a compliance achievement but also a signal to international partners and investors that Nigeria is strengthening the integrity of its financial system.”
She noted that the country’s improved coordination among agencies such as the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC) played a pivotal role in achieving delisting.
“These institutions have enhanced data sharing, improved customer due diligence mechanisms, and adopted technology-driven monitoring systems,” she explained. “The focus on risk-based supervision has been particularly crucial in closing enforcement gaps.”
Onokevbagbe, whose recent paper “Addressing Illicit Financial Flows in Nigeria: The Role of AML/CFT/CPF Frameworks” examined the intersection between regulatory compliance and financial integrity, emphasised that delisting should not lead to complacency.
“Sustaining FATF compliance requires continuous investment in institutional capacity, technological innovation, and transparency in enforcement,” she said. “Financial integrity is not a one-off reform — it’s a culture that must be embedded within both the public and private sectors.”
She added that Nigeria’s success offers a model for other developing economies grappling with illicit financial flows and weak enforcement mechanisms. “The lesson here is that a coordinated, data-driven, and risk-based approach can yield measurable outcomes even in complex regulatory environments,” she observed.
Nigeria was first placed on the FATF grey list in February 2023, a move that heightened scrutiny from international financial institutions and correspondents. Its removal now positions the country to attract more foreign investment and restore confidence in its regulatory system.
For experts like Onokevbagbe, the challenge ahead lies in ensuring that the reforms driving this milestone are institutionalised.
“The goal should be to prevent regression by maintaining momentum in supervision, inter-agency collaboration, and compliance awareness across the financial ecosystem,” she concluded.
