Nigeria’s recent exit from the Financial Action Task Force (FATF) grey list has been described by Bureau De Change (BDC) operators and financial experts as a major step toward restoring investor confidence, stabilizing the foreign exchange (forex) market, and strengthening the naira.
The FATF grey list is a global watchlist of countries deemed to have strategic deficiencies in their systems for combating money laundering, terrorist financing, and proliferation financing.
Speaking with Naijaonpoint in Abuja, several experts noted that the development is expected to attract more foreign investment and improve liquidity in the forex market.
They said the move will enhance Nigeria’s ability to access global financial markets, reduce restrictions on correspondent banking relationships, and foster smoother international transactions.
Alhaji Aminu Abdul, a Bureau De Change Operator in Abuja, said Nigeria’s delisting from the grey list will “open new doors of opportunity” for BDCs and other forex market players. According to him, the FATF’s recognition will not only improve confidence in Nigeria’s financial system but also encourage inflows from the diaspora and international investors who were previously cautious.
“Our exit from the FATF grey list is a positive signal to global investors and partners that Nigeria is serious about financial integrity and transparency. It will enhance foreign capital inflows, boost liquidity, and ultimately help in stabilizing the naira,” Aminu said.
He added that the decision would also encourage Nigerian banks to rebuild correspondent relationships that were previously restricted by international partners due to compliance concerns.
Economist and former Director-General of the Lagos Chambers of Commerce and Industries (LCCI), Dr. Muda Yusuf, also emphasized that the development reflects improved regulatory oversight and could strengthen Nigeria’s macroeconomic fundamentals.
“The exit from the FATF grey list will boost FDI because of the elevated level of confidence in Nigeria. If the capital inflows improve, it will help the forex environment. Because, if perception is positive, FDI is likely to improve, all other things being equal,” Yusuf said.
Another economist, Dr. Ben Uwana said, “Being on the FATF grey list created perception risks that discouraged foreign direct investment and limited international financial engagement. Now that we’re off the list, Nigeria stands to benefit from improved investor sentiment, greater capital mobility, and enhanced trade financing.”
Experts say that the removal is expected to complement the Central Bank of Nigeria’s ongoing reforms in the foreign exchange market. With increased transparency and restored confidence, more legitimate forex inflows are expected to enter through official channels rather than the parallel market.
An Abuja-based forex trader, Michael Ogar, added that the exit could lead to a gradual appreciation of the naira as the market responds positively to increased liquidity and improved investor trust.
“If properly managed, we could see a stronger naira in the coming months, especially as more international financial institutions resume partnerships with Nigerian banks,” he said.
On Friday, the Financial Action Task Force said it has removed Nigeria from its grey list, ending nearly three years of being tagged a destination for dirty money and signaling a boost for investor confidence in the nation’s economy.
Alongside Nigeria, South Africa, Burkina Faso, and Mozambique were removed from the list after their governments stepped up efforts to combat money laundering and terrorist financing.
Nigeria was added to the grey list in February 2023.
Nigeria was added to the grey list in February 2023.
On its part, the CBN has said it will 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.
The naira closed last week stronger at N1,455.5/$1 on Friday, marking an improvement from N1,461/$1 recorded the previous day, according to data published on the Central Bank of Nigeria (CBN) website.