Nigeria’s Presence on Money Laundering List Hampers Foreign Investment, Say Stakeholders

Stakeholders have expressed concerns over the impact of Nigeria’s continued presence on the global money laundering list, compiled by the Financial Action Task Force (FATF), on efforts to attract Foreign Direct Investment (FDI) into the country. Despite a recent review in October, Nigeria remained on the grey list, affecting its reputation and increasing scrutiny in international business transactions.

Tunde Amolegbe, Managing Director of Arthur Stevens Asset Management Limited, highlighted that being on the grey list would result in increased scrutiny and monitoring of Nigerian entities, leading to higher compliance costs and reduced competitiveness in attracting FDI. He emphasized the need for swift action by authorities to align Nigeria’s anti-money laundering and counter-terrorist financing regulations with FATF requirements.

Dotun Seyingbo, an economic development and governance reform specialist, noted that effective implementation of anti-money laundering regulations is crucial for strengthening a country’s financial system and attracting FDI. Poor implementation undermines financial system integrity, financial market stability, and the ability of firms to compete, creating an uncertain business environment that hampers investment.

Stakeholders emphasize the urgency of addressing deficiencies in Nigeria’s regulatory framework to enhance its standing and promote a conducive environment for foreign investment.