Nigeria’s removal from the Financial Action Task Force (FATF) grey list has restored global confidence in the country’s financial system and prevented a potential loss of over $30 billion in investments.
The disclosure was made by Central Bank of Nigeria (CBN) Governor Olayemi Cardoso on Friday at the annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
Describing the exit as “one of the most significant achievements this year,” Cardoso explained that Nigeria’s removal from the grey list was the result of a coordinated nationwide effort led by the Federal Government with inputs from the CBN.
He stated, “Nigeria’s grey-listing carried a significant cost: countries in this category typically experience a 7.6% of GDP drop in capital inflows in the first year, for Nigeria, that translates to more than USD 30 billion in potential investment. Exiting the list, therefore, signals a major restoration of confidence and eases compliance frictions for correspondent banks.”
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Cardoso highlighted that Nigeria implemented a comprehensive set of reforms and institutional enhancements to address deficiencies identified by FATF during its on-site assessment, as seen on Nairametrics.
These measures included strengthening the supervision of financial institutions, improving the quality and consistency of reporting for suspicious and cross-border transactions, and enhancing intelligence-sharing among relevant agencies.
He also noted the importance of deploying modern governance tools such as the Electronic Financial Evaluation Monitoring System (EFEMS) and the Foreign Exchange (FX) Code, which helped tighten oversight and ensure greater transparency across the financial system.
In October, FATF officially removed Nigeria from its grey list, ending nearly three years of classification as a high-risk destination for illicit funds and signaling a boost for investor confidence.
Nigeria was delisted alongside South Africa, Burkina Faso, and Mozambique, following concerted government efforts to combat money laundering and terrorist financing.
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Image Credit: African Newspapers of Nigeria Plc
