Reclaiming Trust: How Nigeria Fought its Way Off Grey List

Timothy Enietan-Matthews

When the Financial Action Task Force (FATF) placed Nigeria on its “grey list” in February 2023, it was more than a technical classification—it was a warning. The world’s largest black economy and Africa’s financial powerhouse had been tagged as a jurisdiction with “strategic deficiencies” in its fight against money laundering and terrorist financing.

For a country striving to attract foreign investment and rebuild global trust, the listing was a reputational blow. It raised red flags among international investors, slowed cross-border financial transactions, and added extra layers of scrutiny to Nigerian banks.

Now, less than two years later, Nigeria has emerged from that shadow. In a statement from Paris, the FATF confirmed Nigeria’s removal from the list, alongside South Africa, Mozambique, and Burkina Faso. It is a story not only of reform but of redemption—a narrative of how political will, institutional synergy, and disciplined economic management converged to restore confidence in Nigeria’s financial governance.

How Nigeria Got on the List

Nigeria’s journey to the FATF grey list was years in the making. The global watchdog’s 2023 evaluation found systemic weaknesses: poor inter-agency coordination, insufficient financial intelligence sharing, and weak enforcement of anti-money laundering (AML) and counter-terrorism financing (CTF) measures.

The country’s complex financial ecosystem—dominated by cash transactions, informal networks, and limited traceability—further compounded the challenge. Despite existing institutions like the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), and the Nigerian Financial Intelligence Unit (NFIU), global assessors saw loopholes that could be exploited by criminal networks and terror financiers.

Being grey-listed came at a cost. According to the International Monetary Fund (IMF), countries under increased monitoring typically experience a 7.6% reduction in foreign capital inflows. For Nigeria, already reeling from foreign exchange shortages, low investor confidence, and an overstretched fiscal space, the implications were dire.

Rebuilding a Soiled Image

The delisting did not happen by chance—it was the outcome of a rigorous, two-year reform process marked by deliberate coordination and institutional renewal. The FATF itself acknowledged that “Nigeria had stronger inter-agency coordination and improved implementation of AML/CFT measures.”

Under the renewed financial architecture of the Tinubu administration, the Nigerian Financial Intelligence Unit became the anchor of reform, while the Ministries of Justice, Finance, and Interior worked closely to close long-standing gaps. The Attorney-General of the Federation, Lateef Fagbemi, led the legal framework realignment; Minister of Interior, Olubunmi Tunji-Ojo, strengthened internal compliance systems; and the NFIU’s Chief Executive Officer, Hafsat Bakari, spearheaded intelligence modernization.

At the policy level, the Ministry of Finance and the Coordinating Minister of the Economy, Wale Edun, played a quiet but central role—integrating fiscal transparency into broader economic reforms, enhancing financial reporting standards, and ensuring that Nigeria’s monetary and fiscal authorities moved in sync.

It was under this harmonized leadership that Nigeria not only met FATF’s action plan requirements ahead of schedule but also demonstrated that reform could be both structural and sustainable.

Beyond Delisting: The Broader Economic Picture

The FATF delisting coincides with two other notable economic markers—a consistent decline in Nigeria’s inflation rate and a gradual rise in foreign reserves. While modest, these indicators collectively point to a broader story of recovery and stabilization.

Under Wale Edun’s stewardship, the Ministry of Finance has pursued policies that restore investor confidence and enhance fiscal discipline. The removal of multiple exchange rate windows, fiscal tightening, and renewed emphasis on transparency have begun yielding measurable results.

Inflation, which had spiked sharply in 2023 following fuel subsidy removal and foreign exchange reforms, has started to ease month-on-month. Simultaneously, foreign reserves—bolstered by increased diaspora remittances, renewed investor interest, and oil revenue stabilization—are edging upward for the first time in nearly three years.

Though these gains may appear incremental, they represent the early fruits of deliberate, coherent policymaking—a stark contrast to the policy inconsistencies that previously plagued Nigeria’s fiscal and monetary space.

Edun noted that the economic gains are a direct offshoot of the policies put in place by the present administration, in efforts to ensure the nation’s economy bounces back on track.

What the Delisting Means for Nigeria

For the ordinary Nigerian, FATF’s decision may seem like a remote technical event. Yet, its implications are tangible. Delisting means smoother international transactions, reduced scrutiny on Nigerian financial institutions, and easier access to global capital.

“Corporates and individuals will face less friction in cross-border payments once key jurisdictions mirror the FATF decision,” said Vincent Gaudel, a financial crime compliance expert. “Banks will expand correspondent services, and trade-finance operations will run more smoothly.”

Investors, too, are taking notice. The delisting signals to the international market that Nigeria is committed to transparency, financial integrity, and compliance with global norms—an image that directly supports foreign direct investment and capital market activity.

Sustaining the Momentum

The challenge now is not just staying off the FATF list, but ensuring Nigeria never returns to it. Sustainability demands more than policy pronouncements—it requires continuous institutional vigilance, updated technology, and constant alignment with global standards.

The FATF’s statement underscores this point: “Delisting does not mean the end of scrutiny. Countries must continue to maintain and improve their frameworks to ensure long-term compliance.”

To that end, Nigeria’s ongoing reforms are being institutionalized. The Ministry of Finance and NFIU are working to embed compliance mechanisms across the financial sector, while periodic assessments and audits will help detect potential lapses early.

President Tinubu himself captured this sentiment aptly: “The exit from the FATF grey list marks the beginning of a new chapter in the nation’s financial reform agenda. Nigeria will sustain the already institutionalised reforms, deepen institutional collaboration, and continue to build a financial system that Nigerians and the world can trust.”

A Quiet Architect of Reform

Though often understated, Wale Edun’s coordination of Nigeria’s economic and financial reform narrative has been crucial. From stabilizing the naira to improving debt transparency and expanding investor engagement, his approach reflects a return to fundamentals—discipline, data, and dialogue.

The synergy he fosters between fiscal authorities, regulatory agencies, and the Central Bank has created a more predictable macroeconomic environment—one where compliance, transparency, and stability coexist.

Conclusion: The Rebirth of Credibility

Nigeria’s removal from the FATF grey list is more than a procedural success—it is a symbolic reclaiming of credibility. It signals to the world that the country is ready to do business again on the terms of transparency and trust. Combined with a steadily improving inflation outlook and a rising foreign reserve buffer, it paints a picture of a country slowly regaining its economic rhythm under disciplined, reform-driven leadership.

It is, in essence, the story of a nation that stumbled—but chose to rebuild. A nation that was grey-listed—but not written off. And most importantly, a nation that is learning, once again, to make integrity its greatest form of currency.

.Enietan-Matthews a policy analyst wrote from Lagos