Nigeria is positioned for a significant boost in trade and foreign investment following its removal from the European Union’s list of high-risk countries for financial crimes, a development that experts say will strengthen investor confidence and substantially lower the cost of doing business with Europe’s integrated market of over 450 million consumers.
The delisting, which takes effect from January 29, 2026, follows Nigeria’s successful exit from the Financial Action Task Force (FATF) greylist, marking a major milestone in Africa’s largest economy’s reforms to combat money laundering and terrorist financing. With the new status, financial transactions between Nigeria and EU member states will no longer be subjected to enhanced due diligence, a process that had slowed trade flows and increased compliance costs for businesses and financial institutions operating across borders.
The decision is contained in European Commission Delegated Regulation (EU) C (2025) 8460, adopted on December 4, 2025, and is in line with updates by the Financial Action Task Force from its October 2025 Plenary. The regulation also confirms the removal of Burkina Faso, Mali, Mozambique, South Africa, and Tanzania from the list, following their successful exit from the FATF list of Jurisdictions under Increased Monitoring after addressing identified strategic deficiencies in anti-money laundering and counter-terrorism financing frameworks.
Build the future you deserve. Get started with our top-tier Online courses: ACCA, HESI A2, ATI TEAS 7, HESI EXIT, NCLEX-RN, NCLEX-PN, and Financial Literacy. Let Serrari Ed guide your path to success. Enroll today.
Government Officials Hail Landmark Achievement
Confirming the development, the Minister of State for Finance, Dr. Doris Aniete, described the move as a “big win” for Nigeria and a strong boost to trade and investor confidence. In a post on her X page on Thursday, she congratulated President Bola Ahmed Tinubu on the achievement.
She wrote: “Big win for Nigeria! Removed from EU’s financial ‘high-risk’ list. Congrats to President @officialABAT on this achievement. As Minister of State for Finance, I’m proud of this boost to trade and investor confidence.”
Speaking in Lagos on Thursday at the NESG 2026 Macroeconomic Outlook Presentation, Minister of Finance and Coordinating Minister of the Economy Wale Edun said, “Exiting the EU high-risk list is a landmark achievement for Nigeria. It sends a clear signal to investors that Nigeria is serious about maintaining a stable, credible, and transparent business environment.”
Hafsat Abubakar Bakari, the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), described the decision as “an important external validation of Nigeria’s steady progress in strengthening its AML/CFT/CPF framework.” She emphasized that the achievement is the product of collective national effort involving government agencies, the legislature, judiciary, private sector, and civil society organizations.
“Nigeria’s exit from the FATF Grey List and the European Union’s high-risk third country list reflects the strength of our collective resolve and the effectiveness of sustained, coordinated reforms,” Bakari said. “This milestone underscores our commitment to upholding global standards on anti-money laundering, counter-terrorism financing and counter-proliferation financing, while reinforcing international confidence in Nigeria’s financial system.”
Understanding the EU High-Risk List and Its Impact
The EU high-risk list identifies countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks. Under EU regulations, entities covered by the bloc’s anti-money laundering framework are required to apply enhanced vigilance when dealing with countries on the high-risk list, adding layers of scrutiny that slow transactions and increase costs.
Nigeria’s inclusion on this list had long been a concern for exporters, importers, banks, and foreign investors, who faced stricter scrutiny in cross-border transactions and significantly higher compliance burdens. Financial institutions in EU member states were obligated to conduct enhanced due diligence on all transactions involving Nigerian entities, a requirement that often resulted in delayed payments, rejected transactions, and strained correspondent banking relationships.
“This is a major reputational win for Nigeria,” said economist Damien Ohuakanwa. “Being on the EU high-risk list meant Nigerian transactions were treated with suspicion, causing delays and higher costs. Removal from the list improves confidence in our financial system and makes trade with Europe faster and cheaper.”
The enhanced due diligence requirements imposed additional documentation demands, extended verification timelines, and required European financial institutions to maintain heightened monitoring of Nigerian-related transactions. These measures, while intended to protect the integrity of the European financial system, created significant friction in legitimate commercial activities between Nigeria and EU markets.
Nigeria’s Journey Off the FATF Greylist
Nigeria’s removal from the EU high-risk list follows directly from its earlier exit from the FATF greylist, achieved in October 2025 during the organization’s Plenary in Paris. The country was delisted alongside South Africa, Burkina Faso, and Mozambique, all of which had stepped up efforts to combat money laundering and terrorist financing through comprehensive reform programs.
FATF President Elisa de Anda Madrazo called the removal of the four countries “a positive story for the continent of Africa”. She noted that Nigeria had created better coordination between agencies, while the other countries had made similar improvements in various aspects of their financial crime prevention frameworks.
Nigerian President Bola Ahmed Tinubu said the delisting marked a “major milestone in Nigeria’s journey towards economic reform, institutional integrity and global credibility.” The Nigerian Financial Intelligence Unit separately stated that it had “worked resolutely through a 19-point action plan” to demonstrate the country’s commitment to improvements.
Nigeria and South Africa were added to the FATF greylist in February 2023, Mozambique in October 2022, while Burkina Faso was first designated in February 2021. The greylist identifies jurisdictions under increased monitoring, with countries placed on it committing to resolve swiftly identified strategic deficiencies within agreed timeframes.
Comprehensive Reforms Drive De-listing Success
Between 2023 and 2025, Nigeria implemented sweeping legal, institutional, and operational reforms that strengthened the integrity of its financial system. The Federal Government repeatedly stated that strengthening financial integrity and transparency is central to its economic reform agenda under President Tinubu’s administration.
Key legislative reforms included the enactment of the Money Laundering (Prevention and Prohibition) Act 2022 and the Terrorism (Prevention and Prohibition) Act 2022, both updated to align fully with FATF standards. These laws strengthened enforcement mechanisms, expanded the scope of predicate offenses, and enhanced penalties for violations.
Nigeria also established a Beneficial Ownership Register to promote corporate transparency, allowing regulators to trace the real individuals behind financial transactions—a long-standing FATF requirement. This register addresses transparency gaps that had been identified in Nigeria’s 2021 FATF mutual evaluation and enables authorities to pierce corporate veils that could conceal illicit financial flows.
Progress on corporate transparency was driven by the Corporate Affairs Commission, in collaboration with the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority, according to the NFIU’s detailed attribution of reform contributions across government agencies.
Inter-Agency Coordination and Institutional Strengthening
The NFIU emphasized that Nigeria’s success stems from a “whole-of-government and whole-of-society approach” to building stronger safeguards against financial crimes. The agency expressed gratitude to various stakeholders, including Ministries, Departments and Agencies, the Legislature, the Judiciary, the private sector, and non-profit organizations for their coordinated efforts and dedication.
Regulatory and supervisory improvements were led by the Central Bank of Nigeria, the Securities and Exchange Commission, the National Insurance Commission, and the Special Control Unit Against Money Laundering (SCUML) of the Economic and Financial Crimes Commission (EFCC), through improved risk-based supervision and effective application of targeted financial sanctions.
Law enforcement outcomes were reinforced by agencies including the Nigeria Police Force, EFCC, Independent Corrupt Practices Commission (ICPC), Department of State Services (DSS), Defence Intelligence Agency (DIA), National Drug Law Enforcement Agency (NDLEA), and the Code of Conduct Bureau. These agencies improved their capacity for financial investigations, secured more convictions for money laundering and terrorism financing offenses, and demonstrated effectiveness in disrupting criminal financial networks.
The Federal Ministry of Justice played a key role in securing convictions, facilitating mutual legal assistance with foreign jurisdictions, and enabling the recovery and repatriation of illicit assets, while the Federal High Court was commended for timely adjudication and the application of proportionate sanctions to deter financial crimes.
At Nigeria’s borders and ports of entry, the Nigeria Customs Service, Nigeria Immigration Service, Federal Airports Authority of Nigeria, and the Nigeria Civil Aviation Authority were credited with curbing cross-border cash smuggling and illicit trade, with investigative support from intelligence agencies. Enhanced screening of travelers and cargo, improved data sharing systems, and risk-based targeting improved detection of illicit financial flows at entry points.
National security coordination was strengthened under the leadership of the National Security Adviser, particularly in addressing terrorism and terrorism financing through closer collaboration among security agencies. These efforts improved information sharing and risk management related to financial flows linked to security threats, a critical area given Nigeria’s security challenges in various regions.
Economic and Financial Implications for Nigeria
Nigeria’s exit from the EU high-risk list is expected to have significant economic and financial implications across multiple sectors. Countries classified as high-risk often face higher transaction costs, delayed payments, tighter correspondent banking relationships, and reduced foreign investment. The lifting of enhanced due diligence requirements addresses all these friction points.
“This development will support increased capital inflows, especially in sectors such as manufacturing, agriculture, energy and fintech,” economist Damien Ohuakanwa said. “It also improves Nigeria’s competitiveness against peer African economies that are already considered low-risk jurisdictions.”
Lower transaction costs, faster payment processing, and reduced compliance hurdles are expected to encourage Nigerian exporters, particularly in non-oil sectors, to expand their presence in European markets. Nigeria’s significant non-oil export sectors including agricultural products, processed foods, textiles, and creative industry outputs will benefit from reduced friction in accessing European consumers and businesses.
The impact on remittance flows could also prove substantial. Nigeria is one of Africa’s largest recipients of diaspora remittances, with significant populations in European countries including the United Kingdom, Italy, Spain, and Germany. Enhanced due diligence requirements had added costs and delays to remittance transactions, reducing the net amounts reaching recipients. With these requirements lifted, remittance service providers can operate more efficiently, potentially passing cost savings to customers.
Foreign direct investment is likely to rise as global investors perceive reduced regulatory and reputational risks associated with Nigerian operations. European companies considering investments in Nigeria’s growing economy had faced additional compliance costs and reputational concerns due to the high-risk designation. The removal of this designation eliminates a significant barrier to investment decision-making.
One decision can change your entire career. Take that step with our Online courses in ACCA, HESI A2, ATI TEAS 7, HESI EXIT, NCLEX-RN, NCLEX-PN, and Financial Literacy. Join Serrari Ed and start building your brighter future today.
Banking Sector Set for Transformation
For the banking sector, the development is equally significant and potentially transformative. Nigerian banks are expected to find it easier to maintain and expand correspondent banking relationships with European institutions, which are vital for international payments, trade finance, and cross-border investments.
“This sends a powerful message that Nigeria is serious about financial reforms,” a banking industry source said. “It positions the country as a safer and more reliable partner in global finance.”
Correspondent banking relationships are essential infrastructure for international financial connectivity, enabling banks to process cross-border payments, provide trade finance services, and facilitate foreign exchange transactions on behalf of clients. European banks had become increasingly cautious about maintaining correspondent relationships with Nigerian institutions due to enhanced due diligence requirements and de-risking pressures.
According to Finance in Africa analysis, Nigeria’s seven largest banks faced a combined $10.7 million in regulatory fines in 2024 as regulators tightened enforcement as part of the reform process. This demonstrated commitment to compliance even at significant cost to financial institutions, building credibility with international partners.
Vincent Gaudel, Financial Crime Compliance Expert at LexisNexis Risk Solutions, noted that “Corporates and individuals will face less friction in cross-border payments once key jurisdictions mirror the FATF decision. Banks will expand correspondent services, and trade-finance operations will run more smoothly.”
The immediate impact will be felt in regional payment infrastructure—from PAPSS (Pan-African Payment and Settlement System) in West Africa to TCIB in the southern corridor—where greater trust in AML/KYC (Know Your Customer) processes reduces the friction that once hampered intra-African flows.
Trade Finance and Export Growth Opportunities
The removal of enhanced due diligence requirements opens significant opportunities for Nigerian exporters who had struggled with European market access due to banking compliance challenges. Letters of credit, documentary collections, and other trade finance instruments essential for international commerce had become more expensive and time-consuming when involving Nigerian entities.
European importers of Nigerian products had faced pressure from their banks to find alternative suppliers from countries not on high-risk lists, threatening Nigeria’s market share in key export sectors. With the delisting, Nigerian exporters regain competitive parity with suppliers from other African countries not subject to enhanced scrutiny.
The agricultural sector stands to benefit particularly strongly. Nigeria is a major producer of cocoa, cashew nuts, sesame seeds, shea butter, and other commodities with significant European demand. Enhanced due diligence had created uncertainty for European buyers about payment processing and compliance obligations, sometimes leading them to source from alternative origins despite Nigeria’s competitive advantages in quality and pricing.
The solid minerals sector, including exports of products like tin, columbite, and limestone, should also experience improved market access. European industrial buyers in sectors like steel, chemicals, and construction materials will find it easier to establish sustainable supply relationships with Nigerian mining companies without the compliance overhead previously associated with high-risk jurisdiction transactions.
Nigeria’s burgeoning creative industries—including film (Nollywood), music, fashion, and digital services—will benefit from smoother financial flows supporting international collaborations, licensing agreements, and revenue collection from European markets. The removal of payment friction could accelerate Nigerian creative content’s already impressive penetration of global markets.
Fintech Sector Positioned for European Expansion
Nigeria’s fintech sector, already the most vibrant in Africa with companies like Flutterwave, Paystack, and Interswitch achieving significant scale, is positioned to expand European operations more aggressively. Enhanced due diligence requirements had created significant barriers for Nigerian fintech companies seeking to process payments, hold accounts, or partner with European financial institutions.
European regulators had been cautious about approving partnerships or licensing arrangements involving Nigerian fintech firms due to money laundering concerns associated with the high-risk designation. The removal of this designation should facilitate regulatory approval processes, enabling Nigerian fintech companies to establish European presences, process euro-denominated transactions, and serve the substantial Nigerian diaspora population in Europe.
Cross-border payment services, remittance platforms, and digital wallet providers will particularly benefit from reduced compliance friction. These businesses had faced enhanced scrutiny that increased operational costs and created uncertainty about partnership sustainability with European payment networks and banking institutions.
Impact on Nigeria’s Credit Ratings and Investment Climate
Beyond immediate transactional benefits, Nigeria’s removal from the EU high-risk list contributes to improving sovereign risk perception that influences credit ratings and investment decisions. The delisting signals to international rating agencies and investors that Nigeria’s institutional frameworks are strengthening and aligning with global standards.
In May 2025, Moody’s Investors Service upgraded Nigeria’s long-term foreign-currency issuer rating from Caa1 to B3, citing “a more resilient fiscal position, stronger external accounts and the government’s demonstrated commitment to macro-economic and structural reforms.” The FATF and EU delistings provide additional evidence supporting continued positive rating momentum.
Credit rating improvements reduce Nigeria’s cost of borrowing in international capital markets, making it more affordable for the government to access external financing for infrastructure and development projects. They also reduce the risk premium demanded by private sector investors, potentially lowering the cost of capital for Nigerian businesses accessing international funding.
Portfolio investment flows into Nigerian equity and debt markets should benefit from improved risk perception. International fund managers operating under mandates that restrict allocations to high-risk jurisdictions will find it easier to justify Nigerian exposures to their compliance departments and investors. This could support increased foreign participation in Nigerian capital markets.
Regional Leadership and Continental Financial Integration
As Africa’s largest economy, Nigeria’s improved standing in the international financial system could enhance its leadership role on the continent and accelerate deeper integration into global trade and investment networks. The country’s success in exiting both the FATF greylist and EU high-risk list demonstrates that African countries can meet global standards through sustained reform efforts.
This sets a positive example for other African nations working to strengthen their AML/CFT frameworks and improve international financial system integration. Nigeria’s experience provides a roadmap showing that technical deficiencies can be addressed through coordinated institutional action, legislative reform, and persistent engagement with international standard-setting bodies.
Nigeria’s de-listing also strengthens the credibility of regional efforts to combat financial crime through bodies like the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA). Nigeria’s active engagement with GIABA throughout its reform process demonstrates the value of regional cooperation in achieving international compliance standards.
Enhanced financial connectivity between Nigeria and European markets should support broader African continental integration objectives under the African Continental Free Trade Area (AfCFTA). As one of Africa’s largest economies and most significant markets, Nigeria’s improved access to international financial systems creates positive spillovers for intra-African trade, particularly as regional value chains develop.
Sustaining Reforms and Managing Ongoing Challenges
While the delisting represents a major achievement, officials and analysts emphasize that sustaining these gains will require continuous commitment to transparency, regulatory enforcement, and financial sector reforms. The NFIU’s Hafsat Bakari cautioned that the achievement “places a clear responsibility on all stakeholders to sustain momentum, guard against complacency and continue strengthening our systems in response to evolving financial crime risks.”
FATF has placed both Nigeria and South Africa under a 12-month post-observation period, requiring proof that reforms translate into sustained enforcement. During this period, the countries must demonstrate that improvements are not merely technical compliance but reflect genuine effectiveness in combating financial crime.
Nigeria faces its next AML/CFT/CPF Mutual Evaluation in the coming years, a comprehensive assessment that will test whether the reforms implemented to achieve de-listing have been sustained and deepened. The NFIU has pledged to maintain ongoing collaboration, vigilance, and innovation to protect the integrity of the nation’s financial system in preparation for this evaluation.
Evolving financial crime threats including cybercrime, virtual asset-related money laundering, and trade-based money laundering require continuous adaptation of Nigeria’s regulatory and enforcement frameworks. The rapid growth of cryptocurrency adoption in Nigeria presents both opportunities and risks, requiring sophisticated regulatory responses that balance innovation with financial integrity.
Corruption remains a structural challenge that intersects with money laundering risks. While Nigeria has made progress in high-profile prosecutions and asset recovery, sustaining political will for anti-corruption enforcement across administrations will be essential to maintaining international confidence in the country’s financial integrity frameworks.
Civil Society’s Role in Reform Sustainability
Civil society organizations played an important role in achieving the delisting and will remain crucial to sustaining reforms. Organizations including the African Network for Environment and Economic Justice (ANEEJ) promoted awareness, accountability, and sector-specific compliance throughout the reform process.
These interventions improved professional understanding of the obligations and risks associated with money laundering and terrorism financing, particularly in designated non-financial businesses and professions like real estate, precious metals dealers, and legal services. The Legal Sector Risk Assessment Report, produced through civil society collaboration, was presented at the FATF International Cooperation Review Group meeting in Namibia and well-received as evidence of progress.
Continued civil society engagement will be essential to ensuring that compliance extends beyond large financial institutions to smaller enterprises and professional services that can be vulnerable to exploitation for financial crime purposes. Civil society monitoring also provides accountability mechanisms that can help sustain political and institutional commitment to reforms even as attention shifts to other priorities.
Economic Outlook and Growth Implications
The confluence of factors—EU delisting, improved credit ratings, growing international confidence—positions Nigeria for potentially stronger economic performance in 2026 and beyond if reforms are sustained. International Monetary Fund and World Bank projections for Nigeria’s growth have become more optimistic as macroeconomic stabilization policies take effect and external financing conditions improve.
Capital inflows supporting investment in manufacturing, infrastructure, digital economy, and energy sectors could accelerate if investor confidence continues building. Nigeria’s large domestic market, young population, and natural resource endowments provide fundamental attractions for investors once regulatory and financial integrity concerns are addressed.
The government’s economic reform agenda under President Tinubu—including subsidy removals, exchange rate management changes, and revenue mobilization improvements—will be complemented by improved financial system credibility. These reforms create conditions for sustainable growth but require careful implementation to manage social impacts and maintain public support.
Trade expansion with Europe and globally should support export diversification beyond petroleum, a long-standing objective of Nigerian economic policy. The agricultural and manufacturing sectors have significant potential to increase export earnings if they can overcome infrastructure, power, and logistics challenges while benefiting from improved financial connectivity.
Conclusion: A Milestone with Continuing Imperatives
Nigeria’s removal from the EU financial high-risk list effective January 29, 2026, represents a significant milestone in the country’s journey toward stronger financial integrity, improved international credibility, and enhanced economic integration. The achievement reflects years of coordinated effort across government institutions, regulatory agencies, law enforcement, judiciary, private sector, and civil society.
The economic benefits—reduced transaction costs, improved banking relationships, increased investment flows, expanded trade opportunities—have the potential to deliver tangible improvements in Nigeria’s growth trajectory and economic prosperity. Exporters, importers, banks, fintech companies, and investors across sectors stand to benefit from the removal of compliance friction that had hindered cross-border commerce and finance.
However, officials and stakeholders recognize that sustaining these gains requires vigilance, continued institutional strengthening, and adaptation to evolving financial crime threats. The 12-month post-observation period and upcoming mutual evaluation will test whether Nigeria’s reforms have created durable improvements in financial integrity or merely achieved temporary technical compliance.
If maintained, the momentum from FATF and EU delistings could translate into stronger economic growth, higher investment inflows, expanded trade opportunities, and enhanced regional leadership for Nigeria in the years ahead. The success provides evidence that African countries can meet global standards and compete effectively in international financial systems when political will, institutional capacity, and sustained reform efforts align.
For Nigeria’s 200 million citizens, the benefits of improved financial system credibility should ultimately manifest in better economic opportunities, improved access to international markets for businesses, more affordable remittances for diaspora families, and stronger foundations for sustainable development. The challenge now shifts from achieving de-listing to sustaining reforms and translating improved international standing into broad-based prosperity.
Ready to take your career to the next level? Join our Online courses: ACCA, HESI A2, ATI TEAS 7 , HESI EXIT , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟 Dive into a world of opportunities and empower yourself for success. Explore more at Serrari Ed and start your exciting journey today! ✨
Track GDP, Inflation and Central Bank rates for top African markets with Serrari’s comparator tool.
See today’s Treasury bonds and Money market funds movement across financial service providers in Kenya, using Serrari’s comparator tools.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
19th January, 2026
Article, Financial and News Disclaimer
The Value of a Financial Advisor
While this article offers valuable insights, it is essential to recognize that personal finance can be highly complex and unique to each individual. A financial advisor provides professional expertise and personalized guidance to help you make well-informed decisions tailored to your specific circumstances and goals.
Beyond offering knowledge, a financial advisor serves as a trusted partner to help you stay disciplined, avoid common pitfalls, and remain focused on your long-term objectives. Their perspective and experience can complement your own efforts, enhancing your financial well-being and ensuring a more confident approach to managing your finances.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are encouraged to consult a licensed financial advisor to obtain guidance specific to their financial situation.
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an as-is basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2025
