Exiting FATF Grey List, CBN Announces Tangible Economic Benefits
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has disclosed that Nigeria’s exit from the grey list is expected to yield substantial and tangible benefits for both businesses and households, including lowering compliance costs, improving access to international finance, and making cross-border transactions faster and more affordable.
In time, these gains will translate into smoother trade settlements, quicker remittance inflows, and even more predictable access to foreign exchange, enhancing livelihoods, supporting enterprise growth, and deepening financial inclusion.
The apex bank in a statement issued on Saturday and signed by Mrs Hakama Sidi Ali, Acting Director Corporate Communications Department said the Bank welcomed the formal announcement by the Financial Action Task Force (FATF) of Nigeria’s removal from the list of jurisdictions under increased monitoring, commonly referred to as the “grey list”.
She said this development follows a successful on-site evaluation of the reforms implemented across the country’s financial system. “The FATF decision recognizes significant improvements in Nigeria’s regulatory, supervisory, and enforcement frameworks, particularly in combating money laundering, terrorist financing, and proliferation financing” she said.
The FATF decision the statement said also reinforces the broader restoration of global confidence in Nigeria’s economic management. Recent international assessments underscore this momentum: “Moody’s and Fitch have upgraded Nigeria’s ratings outlook on the back of stronger external balances, credible policy execution, and renewed monetary-policy credibility. Similarly, the IMF’s 2025 Article IV Consultation highlighted improved reserve adequacy, greater transparency, and a reform agenda increasingly aligned with global standards”.
The CBN noted that the FATF’s decision followed a two-year reform programme coordinated by the Federal Government of Nigeria. The programme involved multiple 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 contribution specifically centered on enhancing supervision, governance, and transparency across the financial system.
Key reforms assessed by the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA, FATF’s regional assessment body), included: The strengthened oversight of financial institutions was achieved through updated AML/CFT regulations, risk-based supervision, and fit-and-proper assessments.
Compliance reporting and monitoring were expanded across remittance channels, bureaux de change, and fintech platforms to improve traceability and transparency. The enhanced inter-agency data-sharing and enforcement coordination between the CBN, NFIU, EFCC, and law-enforcement bodies were also assessed.
Lastly, the implementation of market governance tools, including the Foreign Exchange Code (FX Code) and Electronic Foreign Exchange Matching System (EFEMS), was a key reform that endeared the FATF to remove Nigeria from the grey list.
According to the CBN, these measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system.
Commenting on the announcement, Governor Olayemi Cardoso stated that: “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. It reflects a clear policy direction and the coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms”.
Governor Cardoso further emphasized that the 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.
Nigeria now joins South Africa, Mozambique, and Burkina Faso as the latest African countries to achieve this milestone, reflecting broader progress across the continent.
The CBN said it remains committed to strengthening collaboration with domestic and international partners to sustain a sound, transparent, and trusted financial system that safeguards financial stability and market integrity while advancing inclusive and sustainable economic growth.
