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Nigeria’s removal from the European Union’s list of high-risk jurisdictions for money laundering and terrorism financing marks a major milestone for the country’s financial system, reflecting the impact of wide-ranging regulatory and institutional reforms implemented in recent years.
Industry analysts say the decision underscores significant improvements in transparency, regulatory oversight, and enforcement of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standards, particularly within the banking and broader financial services sector. The delisting is expected to strengthen investor confidence, reduce transaction frictions, and deepen Nigeria’s integration with global financial markets.
At the heart of the development are reforms led by the Central Bank of Nigeria (CBN), which have reshaped key aspects of the financial system. These include the unification of the foreign exchange rate, clearer regulatory guidance, improved transparency in FX market operations, and tighter monitoring of financial flows across the economy. Together, these measures have helped restore credibility and stability after years of market distortions.
The European Commission confirmed that Nigeria had “significantly strengthened the effectiveness of its AML/CFT regime” and addressed the deficiencies identified by the Financial Action Task Force (FATF). The decision follows resolutions taken at FATF plenary sessions in June and October 2025, which saw Nigeria removed from the list of jurisdictions under increased monitoring, commonly known as the grey list.
As a result, enhanced due-diligence requirements applied to transactions involving Nigeria are expected to be lifted from January 29, 2026, subject to procedural approvals. Analysts note that this will lower compliance costs, speed up cross-border payments, and improve correspondent banking relationships that were previously constrained by Nigeria’s high-risk classification.
Nigeria’s exit from the EU list builds on its earlier removal from the FATF grey list in October 2025, following the implementation of extensive AML/CFT reforms. These included stronger risk-based supervision of financial institutions, improved beneficial ownership verification, expanded compliance reporting across banks, fintechs, bureaux de change, and remittance channels, as well as enhanced inter-agency collaboration among regulators and law-enforcement bodies.
CBN Governor Olayemi Cardoso has repeatedly pointed to these initiatives as evidence of Nigeria’s reform trajectory. Key measures include the deployment of the Electronic Foreign Exchange Market Surveillance System, the introduction of a market-determined FX regime, and governance tools such as the FX Code and electronic FX matching systems.
“These reforms have strengthened the resilience of Nigeria’s financial system and improved our ability to absorb external shocks,” Cardoso said, adding that the focus going forward is on consolidating gains, deepening collaboration with international partners, and leveraging technology and data to strengthen supervision.
Stakeholders have welcomed the EU’s decision. Dr Uju Ogubunka, President of the Bank Customers Association of Nigeria, described the delisting as a major boost for banks and customers engaging with international financial institutions, while cautioning that sustained adherence to global standards is essential to avoid relapse.
Beyond domestic reforms, Nigeria has also intensified international cooperation. In late 2025, the CBN signed a Memorandum of Understanding with the Central Bank of Angola to enhance cross-border supervision, information sharing, cybersecurity cooperation, and AML/CFT implementation—moves aligned with Africa’s broader goals of financial integration and stability.
The economic implications of exiting the grey and high-risk lists are significant. According to the CBN, grey-listed countries typically experience sharp declines in capital inflows, with Nigeria’s potential investment losses previously estimated at over $30 billion. Removal from these lists signals restored confidence and eases compliance burdens for international investors and correspondent banks.
Reflecting the improved outlook, global institutions have begun revising Nigeria’s prospects upward. The World Bank recently upgraded Nigeria’s 2026 growth forecast to 4.4 per cent, citing the positive impact of ongoing reforms, improved macroeconomic management, and strengthening investor sentiment.
With stronger regulatory foundations, improved global perception, and a commitment to sustaining reforms, analysts say Nigeria is better positioned to attract investment, deepen financial inclusion, and support long-term economic growth.
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