The Federal Government of Nigeria announces that the country has been removed from the European Union’s list of high-risk third countries, marking a significant achievement in Nigeria’s economic reform agenda. This development, confirmed by the Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun, underscores Nigeria’s commitment to strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) regime.
The removal follows concerted efforts by the Central Bank of Nigeria (CBN) and the Ministry of Finance to align Nigeria’s regulatory framework with global standards set by the Financial Action Task Force (FATF). Nigeria’s listing was due to concerns regarding the effectiveness of its AML/CFT regime, particularly in relation to the transparency of legal persons and the implementation of targeted financial sanctions.
Key Reforms Driving the Exit;
– Strengthened AML/CFT Framework: Nigeria has implemented a series of coordinated legal and institutional reforms to strengthen its AML/CFT framework, meeting FATF’s expectations.
– Beneficial Ownership Register: The country has operationalized a Beneficial Ownership Register, enhancing transparency and accountability.
– Improved International Cooperation: Nigeria has increased international cooperation and cross-border intelligence exchange with regional and global partners.
The exit from the EU high-risk list is expected to enhance Nigeria’s global financial credibility and investor sentiment, reduce compliance costs and improve trade flows, and attract foreign investment and deepen integration into global financial markets.
This development is similar to Turkey’s recent experience. Turkey was removed from the FATF grey list in June 2024 after making significant progress in improving its anti-money laundering and counter-terrorist financing regime. This move boosted Turkey’s international standing and attracted investment.
Government’s Next Steps
The Nigerian government plans to prioritize affordable food, housing, and job creation in the next phase of reforms. Minister Edun emphasized the need to consolidate gains, maintain policy consistency, and ensure stability translates into inclusive growth, jobs, and shared prosperity.
