The European Union Commission has officially removed Nigeria from its list of high-risk third countries for anti-money laundering and countering the financing of terrorism (AML/CFT), effective January 29, 2026. This decision follows Nigeria’s exit from the Financial Action Task Force (FATF) grey list in October 2025 and aligns with FATF plenaries in June and October 2025. The delisting also includes Burkina Faso, Mali, Mozambique, South Africa, and Tanzania, recognizing their strengthened AML/CFT regimes.
Background on FATF Grey Listing and Nigeria’s Reforms
Nigeria joined the FATF grey list—formally “jurisdictions under increased monitoring”—in February 2023 due to strategic deficiencies in its AML/CFT framework. The FATF, a global standard-setter for financial integrity, required Nigeria to complete an action plan addressing gaps in risk assessment, investigations, prosecutions, international cooperation, and supervision of high-risk sectors like non-profits. Over two years, Nigeria implemented comprehensive reforms, including a national ML/TF risk assessment, updated AML/CFT strategy, enhanced prosecutions, and better monitoring without disrupting legitimate activities.
President Bola Ahmed Tinubu’s administration prioritized these changes, fostering inter-agency coordination with regulators, the Nigerian Financial Intelligence Unit (NFIU), law enforcement, and the judiciary. Support from partners like the US, UK, France, Germany, UN, and GIABA (Inter-Governmental Action Group Against Money Laundering in West Africa) aided progress. By October 2025’s FATF Plenary in Paris, Nigeria fulfilled its commitments, leading to delisting and praise for its “sustained effort and reform.”
EU High-Risk List Mechanics and Update Process
The EU maintains an autonomous list under Delegated Regulation (EU) 2016/1675, identifying countries with AML/CFT deficiencies to mandate enhanced due diligence (EDD) by EU entities like banks, crypto providers, and auditors. EDD includes senior management approval, source-of-funds checks, and potential relationship terminations for high-risk transactions. While aligned with FATF assessments, the EU evaluates independently, adding Bolivia and British Virgin Islands in this update.
The Commission’s announcement confirms Nigeria’s “sufficient progress” in closing technical gaps and boosting regime effectiveness. Procedural approval by the European Parliament and Council is pending, but the regulation amends prior lists where Nigeria appeared post-FATF greylisting. Delisting ends automatic Article 9 AMLD IV EDD, though risk-based measures remain for specific transactions.
Official Reactions from Nigeria and EU Stakeholders
Nigeria’s Finance Minister Wale Edun hailed the move as a “major boost to global financial credibility,” crediting President Tinubu’s leadership and stakeholder collaboration. Minister of State Doris Uzoka-Anite called it a “big win” for trade and investment on X. NFIU CEO Hafsat Bakari emphasized it as “external validation” of reforms, urging sustained momentum against evolving risks.
The EU Commission noted the delistings protect the bloc’s financial integrity while rewarding compliance. No direct EU official quotes were issued, but the update underscores ongoing vigilance.
Economic Impacts and Implications for Nigeria-EU Ties
Removal eases compliance burdens, restores smoother cross-border flows, and cuts costs for Nigerian-EU transactions, previously hit by EDD. Benefits include better correspondent banking, faster remittances, lower FX access hurdles, and heightened investor appeal—vital for Nigeria’s export-driven economy. A 2021 IMF report linked greylisting to reduced capital inflows; delisting reverses this, signaling stability.
For EU firms, it simplifies dealings with Nigeria, Africa’s largest economy, boosting trade in oil, agriculture, and services. Long-term, it positions Nigeria for its 2027 FATF mutual evaluation, reinforcing global partnerships. Risks persist if reforms lapse, but officials pledge continuity.
Broader Context in Global AML Landscape
This aligns with FATF’s 2025 shifts, delisting multiple nations while monitoring others. Nigeria’s journey echoes its 2006 FATF exit after EFCC establishment and 2003 laws, showing iterative progress. Globally, greylisting deters investment and raises costs; delistings like Nigeria’s enhance credibility amid rising crypto and illicit finance threats.