Nigeria’s removal from the Financial Action Task Force (FATF) grey list has been hailed by financial experts and Bureau De Change (BDC) operators as a major milestone toward restoring investor confidence, stabilizing the foreign exchange market, and strengthening the naira.
The FATF grey list, maintained by the global anti-money laundering watchdog, identifies countries with strategic deficiencies in combating money laundering, terrorist financing, and proliferation financing. Nigeria’s recent exit marks a significant turnaround in its compliance standing and international financial credibility.
Renewed Confidence and Market Relief
Speaking with Nairametrics in Abuja, several analysts said Nigeria’s delisting would help attract foreign direct investment (FDI), enhance liquidity in the forex market, and improve cross-border banking relationships that had been strained during the period of enhanced monitoring.
“This development signals to the global community that Nigeria is strengthening its financial integrity,” said Dr. Muktar Gidado, a financial economist based in Abuja. “It removes a layer of caution that had discouraged international investors and correspondent banks from engaging fully with Nigerian institutions.”
BDC operators echoed similar sentiments, describing the move as a “confidence booster” for the forex market. They noted that improved access to international banking networks would facilitate faster fund transfers, increase dollar inflows, and reduce parallel market pressure on the naira.
“Our operations have suffered due to restricted dollar inflows and heightened scrutiny from international partners,” said Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON). “Now that Nigeria is off the grey list, we expect smoother global transactions and improved liquidity in the retail forex segment.”
Impact on the Foreign Exchange Market
Experts predict that Nigeria’s improved global compliance status will ease foreign exchange shortages, encourage foreign portfolio inflows, and promote more transparent capital movements.
They added that global financial institutions that had previously adopted risk-averse positions toward Nigerian transactions may now reopen dormant correspondent relationships, thereby reducing transaction delays and facilitating trade financing for businesses.
“Exiting the FATF grey list will also support the Central Bank of Nigeria’s ongoing monetary reforms,” noted Lola Akintunde, a financial analyst. “It creates a more enabling environment for currency stability, especially as the country continues efforts to unify exchange rates and improve fiscal management.”
A Win for Financial Reforms and Global Trust
Nigeria’s exit from the grey list follows a series of regulatory and institutional reforms led by the Nigerian Financial Intelligence Unit (NFIU), the Central Bank of Nigeria (CBN), and the Economic and Financial Crimes Commission (EFCC). These efforts focused on enhancing transaction monitoring, strengthening reporting standards, and aligning with international anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks.
Financial experts described the move as validation of Nigeria’s commitment to transparency and compliance, which could also influence credit ratings and lower the cost of international borrowing in the medium term.
The Road Ahead
While the achievement has been widely applauded, experts warn that maintaining the country’s clean status will require sustained vigilance, continuous regulatory oversight, and consistent enforcement of AML and CFT measures across all financial sectors.
“The challenge now is to maintain momentum,” Dr. Gidado said. “Nigeria must continue to demonstrate strong compliance culture so that this success translates into tangible economic gains — stable currency, higher investor inflows, and stronger institutions.”
With the FATF delisting restoring Nigeria’s international reputation, stakeholders are optimistic that the development marks a turning point in the nation’s economic recovery journey, offering renewed hope for the forex market, investors, and the broader financial system.
