By Kay Noel
Nigeria is poised to be removed from the Financial Action Task Force’s (FATF) grey list as early as October 24, 2025, after making significant progress in addressing deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CTF) regime. The country has met 37 out of 40 FATF recommendations, demonstrating notable improvements in transparency and beneficial ownership of legal persons and arrangements.
The country’s progress is attributed to strengthened oversight of financial institutions, new legislation to modernize the securities market, and measures to track beneficial ownership of companies. The International Monetary Fund (IMF) and other global institutions have acknowledged Nigeria’s efforts to combat financial crimes.
Removal from the grey list would have significant implications for Nigeria. It would enhance the country’s international standing and investor confidence, reduce friction in international trade and capital markets, and potentially lead to more foreign investment and new economic opportunities. Additionally, international banks would face fewer compliance hurdles when dealing with Nigerian counterparts, resulting in lower transaction costs.
The FATF will make a final decision on Nigeria’s removal at its October 2025 plenary meeting. If successful, this would mark a significant milestone in Nigeria’s efforts to strengthen its financial integrity and promote a safer, more transparent global financial system.
