CBN Vows to Consolidate Reforms as Nigeria Exits FATF Grey List

The Central Bank of Nigeria (CBN) has vowed to consolidate on recent financial system reforms, emphasizing that compliance, innovation, and trust must continue to advance hand in hand to reinforce financial stability and strengthen Nigeria’s global credibility.

This pledge follows the Financial Action Task Force’s (FATF) formal announcement removing Nigeria from its list of jurisdictions under increased monitoring—commonly referred to as the “grey list.”  

In a statement on Saturday,  the CBN said the decision comes after a successful on-site evaluation of Nigeria’s anti-money laundering and counter-terrorist financing frameworks, marking a significant milestone in the country’s financial reform journey.

“The FATF’s decision to remove Nigeria from the grey list is a strong affirmation of our reform trajectory and the growing integrity of our financial system,” said CBN Governor Olayemi Cardoso.  

“It reflects a clear policy direction and the coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms. Our priority now is to consolidate these gains, ensuring that compliance, innovation, and trust continue to advance hand in hand to reinforce financial stability and strengthen Nigeria’s global credibility.” 

Road to delisting  

The FATF’s decision follows a two-year reform programme led by the Federal Government of Nigeria, involving key agencies including the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).

The CBN’s contributions were instrumental in enhancing governance and transparency across the financial system. Reforms assessed by FATF and its regional partner, the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), included:

• Strengthened oversight of financial institutions through updated AML/CFT regulations, risk-based supervision, and fit-and-proper assessments.
• Expanded compliance monitoring across remittance channels, bureaux de change, and fintech platforms to improve traceability.
• Enhanced inter-agency data sharing and enforcement coordination.
• Implementation of market governance tools such as the Foreign Exchange Code (FX Code) and the Electronic Foreign Exchange Matching System (EFEMS).

These measures have materially improved Nigeria’s alignment with global standards, boosting confidence in the integrity of its financial system.

Expected benefits for businesses and households 

The delisting is expected to yield tangible benefits for businesses and households, including reduced compliance costs, improved access to international finance, and faster, more affordable cross-border transactions.

Over time, these gains will support smoother trade settlements, quicker remittance inflows, and more predictable access to foreign exchange—enhancing livelihoods, enterprise growth, and financial inclusion.

Nigeria’s exit from the grey list also aligns with broader international recognition of its economic reforms. Recent upgrades in Nigeria’s credit outlook by Moody’s and Fitch, along with the IMF’s 2025 Article IV Consultation, have highlighted improved reserve adequacy, greater transparency, and credible policy execution.

Nigeria joins South Africa, Mozambique, and Burkina Faso as the latest African countries to achieve this milestone, reflecting growing regional momentum toward financial integrity and global integration.

The CBN reiterated its commitment to working with domestic and international partners to sustain a sound, transparent, and trusted financial system that supports inclusive and sustainable economic growth.

What you should know  

South Africa and Nigeria were added to the grey list in February 2023, while Mozambique was added in October 2022, and Burkina Faso was originally designated in February 2021.

• Nigeria’s exit from the FATF grey list represents a confidence boost for its financial system and broader economy.
• Being on the list often increases the cost and complexity of cross-border transactions, as global financial institutions impose tighter scrutiny and compliance checks.

With its removal, Nigeria can expect smoother and cheaper international transactions, including remittance inflows that average around $20 billion annually.