Nigeria to exit FATF grey list by 2025, says NFIU CEO

The Chief Executive Officer (CEO) of the Nigerian Financial Intelligence Unit (NFIU), Ms. Hafsat Bakari, has announced that Nigeria is poised to exit the Financial Action Task Force (FATF) grey list by late 2025.

This development signifies a major milestone in the country’s ongoing efforts to strengthen its financial system and enhance its global standing in the fight against money laundering and terrorist financing.

The FATF, the global financial watchdog established in 1995, is responsible for setting international standards to combat money laundering, terrorist financing, and proliferation financing.

Ms. Bakari emphasized that exiting the grey list—an FATF designation for jurisdictions under increased monitoring—would demonstrate Nigeria’s commitment to financial transparency and compliance with international best practices.

According to Bakari, the approval of Nigeria’s fifth progress report by the FATF is a substantial achievement that underscores the country’s sustained reforms in Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT).

She credited the collective efforts of various Nigerian stakeholders for advancing financial intelligence reforms and meeting FATF recommendations.

In a recent plenary session, the FATF commended Nigeria’s significant strides in combating money laundering and terrorist financing.

The organization approved the country’s fifth progress report since its inclusion on the grey list in February 2023. The plenary noted Nigeria’s high-level political commitment and continued execution of an agreed-upon action plan with the FATF’s International Cooperation Review Group (ICRG).

A statement issued by NFIU’s strategic communications officer, Sani Tukur, highlighted that Nigeria remains on track to meet the action plan’s requirements before the May 2025 deadline, potentially leading to an exit from the grey list before year-end.

During the same plenary session, the FATF approved the removal of the Philippines from its list of jurisdictions under increased monitoring. However, the Lao People’s Democratic Republic and Nepal were newly added to the list.

Financial analysts have lauded Nigeria’s progress, noting that exiting the FATF grey list would bolster investor confidence and improve the country’s access to international financial markets.

Dr. Michael Adesina, an economic policy expert, explained the significance of this milestone: “Nigeria’s removal from the FATF grey list will send strong signals to foreign investors that the country is making tangible progress in financial regulation. It will also facilitate smoother cross-border transactions, enhance trade, and boost foreign direct investment inflows.”

Similarly, legal and compliance expert, Mrs. Funmi Olawale, emphasized the importance of sustained efforts beyond FATF compliance.

“While this is a positive development, Nigeria must institutionalize these reforms to ensure long-term resilience. Strengthening financial intelligence mechanisms and continuous inter-agency collaboration will be key to maintaining global confidence in Nigeria’s financial sector,” she said.