Global watchdog, Financial Action Task Force, on Friday 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
Nigeria was removed from the list alongside South Africa, Burkina Faso, and Mozambique after their governments stepped up efforts to combat money laundering and terrorist financing.
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.
Finance Minister Wale Edun hailed the development as a vote of confidence in Nigeria’s reform efforts.
“This development reinforces confidence in our economy and the integrity of our monetary and financial systems, signaling to investors and global partners that Nigeria’s institutions are strong, transparent, and internationally trusted,” Edun said in a message shared before the announcement.”
“It will ease cross-border transactions, improve capital flows, including foreign direct investment, and strengthen the foundations for rapid and sustainable economic growth and job creation,” he added
The FATF Grey List is a list of countries under increased monitoring that are working with the Financial Action Task Force to address strategic deficiencies in their systems for combating money laundering, terrorist financing, and proliferation financing.
Being on the list means a country has made a political commitment to resolve its identified weaknesses within an agreed timeframe, but it can result in negative economic and reputational impacts.
Earlier in February this year, the Chief Executive Officer (CEO) of the Nigerian Financial Intelligence Unit (NFIU), Ms. Hafsat Bakari, had announced that Nigeria was expected to exit the FATF grey list by late 2025.