Nigeria nears FATF grey list exit with fifth report approval

From Juliana Taiwo-Obalonye, Abuja

Nigeria is poised to exit the Financial Action Task Force (FATF) grey list by the end of 2025, following significant progress in strengthening its anti-money laundering and counter-terrorism financing (AML/CFT) frameworks.

According to a statement by the NFIU’s Strategic Communications Office, this development was confirmed during the FATF plenary session held in Paris, where Nigeria’s fifth progress report was approved, marking a major milestone in the country’s efforts to meet international financial crime prevention standards.

The grey list includes jurisdictions under increased monitoring due to deficiencies in their AML/CFT regimes. Nigeria was added to this list in February 2023 after a 2021 Mutual Evaluation Report identified critical gaps in its financial crime prevention measures. Since then, the country has made substantial strides under an action plan jointly developed with the FATF’s International Cooperation Review Group (ICRG).

The plenary acknowledged Nigeria’s sustained high-level political commitment and collaborative efforts among stakeholders, coordinated by the Nigerian Financial Intelligence Unit (NFIU). Concrete measures have been implemented to enhance the effectiveness of the country’s AML/CFT regime, positioning Nigeria to complete its action plan by May 2025. If progress continues at this pace, Nigeria could exit the grey list by late 2025.

The Director/Chief Executive Officer of the NFIU, Hafsat Bakari, led Nigeria’s delegation to the FATF meetings and also delivered a well-received presentation during the side event on “Women in the FATF Global Network.”

She had at previous meetings emphasised that exiting the grey list would not only mark a significant achievement but also reinforce Nigeria’s commitment to fiscal transparency and global financial compliance.

In addition to approving Nigeria’s progress report, the FATF plenary removed the Philippines from its grey list while adding Nepal and the Lao People’s Democratic Republic. These decisions reflect ongoing global efforts to strengthen financial systems against money laundering and terrorist financing.

The FATF, established in 1995, is a global body that sets standards for combating financial crimes. Its grey list designation often impacts a country’s international reputation and access to financial markets. Nigeria’s anticipated removal from this list signals renewed confidence in its financial governance.

Nigeria remains on track to meet its May 2025 deadline for completing FATF-mandated reforms. The government has also launched initiatives like Project Exit, led by the National Information Technology Development Agency (NITDA), to overhaul data management systems critical for compliance. These efforts aim to restore international confidence and position Nigeria as a leader in regulatory compliance.