The European Union Commission has officially removed Nigeria from its list of high-risk jurisdictions concerning Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT). This significant delisting, which takes effect from January 29, 2026, was confirmed through the European Commission Delegated Regulation (EU) C (2025) 8460, adopted on December 4, 2025. The decision aligns with updates from the Financial Action Task Force (FATF) Plenaries of June and October 2025. Alongside Nigeria, Burkina Faso, Mali, Mozambique, South Africa, and Tanzania were also delisted, following their successful exit from the FATF list of Jurisdictions under Increased Monitoring.

The EU Commission acknowledged that Nigeria and the other removed countries have made substantial progress in strengthening the effectiveness of their AML/CFT regimes. This includes closing key technical and operational gaps and fulfilling the commitments set out in their respective FATF Action Plans, which led to their removal from the FATF grey list. The EU’s mandate requires it to identify high-risk third countries with strategic deficiencies in their AML/CFT frameworks, necessitating enhanced vigilance in transactions involving these listed nations to protect the integrity of the EU financial system. With this delisting, automatic country-based enhanced due diligence under Article 9 AMLD IV no longer applies to Nigeria. However, institutions are still required to apply risk-based measures when justified by customer, product, or transaction risk.

This development is widely seen as a major boost for Nigeria's economy and international standing. Nigeria’s Minister of State for Finance, Doris Anite, lauded it as a “big win” that would enhance trade and investor confidence. Hafsat Bakari, the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), described the decision as a “significant affirmation of Nigeria’s collective reform efforts.” She emphasized that it represents an “important external validation of Nigeria’s steady progress in strengthening its AML/CFT/CPF framework,” demonstrating how “consistent reforms, effective coordination and strong national ownership can translate into tangible international outcomes.”

The practical implications for Nigeria are far-reaching. Financial transactions between Nigeria and the European Union will no longer be subjected to the enhanced due diligence requirements previously associated with high-risk jurisdictions. This is expected to significantly ease compliance burdens, facilitate smoother cross-border financial flows, and enhance Nigeria’s appeal for trade, investment, and financial partnerships with EU member states. In the competitive global trade landscape, the delisting further solidifies Nigeria’s position as a reliable economic partner, strengthening Europe’s role as a key destination for Nigerian exports and a vital source of investment and financial services. Beyond immediate economic benefits, this outcome bolsters international confidence in Nigeria’s financial system and underscores its standing as a cooperative and responsible participant in the global financial architecture.

The NFIU played a pivotal role in this achievement, coordinating national AML/CFT/CPF efforts, enhancing the quality and use of financial intelligence, and providing crucial support to supervisory, investigative, and prosecutorial authorities across the country. Ms. Bakari highlighted that this success is the “product of collective national effort” and the result of “sustained collaboration among key stakeholders, including the National Assembly, law enforcement agencies, regulators, supervisors, the judiciary, the private sector and development partners.” The NFIU also attributed the success to the “strong political will and leadership of President Bola Ahmed Tinubu, GCFR,” whose administration prioritized financial system integrity and inter-agency coordination.

The NFIU reaffirmed its commitment to continuous engagement with the FATF, GIABA, the European Union, and other international partners. It also pledged to work closely with domestic stakeholders to ensure Nigeria not only maintains compliance but continues to deepen the effectiveness and resilience of its AML/CFT/CPF framework, urging all stakeholders to sustain momentum and guard against complacency.

Nigeria has a notable history with global AML/CFT standards. It was previously placed on the FATF grey list in February 2023, a decision authorities initially deemed unfair, and from which it was removed in October 2025. Prior to this, Nigeria was first listed among FATF’s Non-Cooperative Countries and Territories in 2001. Following reforms, including repealing the Money Laundering Decree of 1995, enacting the Money Laundering (Prohibition) Act 2003, and establishing the Economic and Financial Crimes Commission (EFCC), Nigeria was delisted by FATF in 2006. Since then, the country has continuously strengthened its legal framework, culminating in the enactment of the 2022 laws. The adverse implications of grey-listing are significant, including discouraging foreign investment, damaging national reputation, increasing borrowing costs, and potentially leading to the loss of correspondent banking services. A 2021 International Monetary Fund report indicated that grey-listed countries experienced “a large and statistically significant reduction in capital inflows.” Nigeria is scheduled for its third mutual evaluation exercise in 2027, which will serve as the next major test of its commitment to financial transparency.