President Bola Tinubu has welcomed the delisting of Nigeria from the grey list of the Financial Action Task Force (FATF), describing the development as a clear demonstration of the country’s commitment to global financial transparency.
The FATF is the world’s foremost standard-setting body responsible for combating money laundering, terrorist financing, and proliferation financing.
President Tinubu hailed the decision as “a major milestone in Nigeria’s journey towards economic reform, institutional integrity, and global credibility.”
According to a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the delisting follows Nigeria’s successful and timely completion of its FATF Action Plan, marking over two years of sustained reform, inter-agency coordination, and strengthened efforts to improve the country’s Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework.
Nigeria was placed on the FATF grey list in February 2023. Onanuga noted that the country’s removal from the list was achieved through the coordinated work of the Nigerian Financial Intelligence Unit (NFIU), in collaboration with the Attorney-General of the Federation and Minister of Justice, the Minister of Finance and Coordinating Minister of the Economy, and the Minister of Interior.
Tinubu lauds NFIU CEO
President Tinubu commended the Director/Chief Executive Officer of the NFIU, Ms Hafsat Abubakar Bakari, and the staff for their diligence in ensuring the complete and timely implementation of the country’s Action Plan.
He noted that the NFIU’s work has led to the recognition by the international community of the strides Nigeria has made in strengthening its measures to tackle serious crimes.
“Without their dedication and sacrifice, today’s success could not have been achieved. I thank them for their efforts and urged other stakeholders to emulate their standards”, President Tinubu said.
According to President Tinubu, Nigeria’s removal from the FATF grey list is “not just a technical accomplishment, it is a strategic victory for our economy and a renewed vote of confidence in Nigeria’s financial governance.
“The exit from the FATF grey list marks the beginning of a new chapter in the nation’s financial reform agenda as Nigeria will sustain the already institutionalised reforms, deepen institutional collaboration and continue to build a financial system that Nigerians and the world can trust”.
Backstory
- On Friday, Financial Action Task Force, 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.
What this means
Nigeria’s removal from the FATF grey list carries major economic, financial, and diplomatic implications, signaling renewed confidence in the country’s governance and regulatory systems.
Being on the FATF grey list meant that Nigeria was considered a high-risk jurisdiction for money laundering and terrorist financing, leading to increased scrutiny by international financial institutions.
- With the delisting, Nigerian banks and businesses can now engage more freely in international transactions without the stigma of additional compliance checks or restrictions.
- Also, the move is expected to boost foreign investment and strengthen investor confidence in the Nigerian economy. Many global investors and development partners rely on FATF ratings to assess risk before engaging with countries.
- Again, this milestone will reduce the cost and delays associated with cross-border transactions. Financial institutions dealing with greylisted countries often face higher transaction fees and longer processing times due to enhanced due diligence requirements.
Diplomatically, Nigeria’s delisting improves its standing in global policy circles, enhancing its influence within international financial organizations and multilateral institutions.