NIGERIA’S REMOVAL FROM THE FATF GREY LIST: IMPLICATIONS FOR GOVERNANCE AND FINANCIAL INTEGRITY.

Nigeria’s removal from the Financial Action Task Force (FATF) Grey List on October 24, 2025, marks a significant milestone in the country’s efforts to combat money laundering and terrorist financing. Placed on the list in February 2023 due to weaknesses in its Anti-Money Laundering /Counter Financing of Terrorism (AML/CFT) framework, Nigeria addressed a 19-point action plan through improved inter-agency coordination, regulatory reforms, and intelligence sharing. This report examines the impact of the delisting on governance and political stability, based on recent FATF plenary outcomes and stakeholder responses. Key findings include enhanced global credibility, increased investor confidence, and economic benefits such as easier access to international finance, which could lead to a 10-15% rise in Foreign Direct Investment (FDI). However, maintaining these gains will require continued vigilance to avoid re-listing. Recommendations include institutionalising AML/CFT training across agencies, leveraging the FATF Guest Jurisdictions Initiative to influence policy, amending laws to improve beneficial ownership transparency, expanding digital surveillance tools, and monitoring high-risk sectors, such as virtual assets. These actions will strengthen governance, reduce corruption risks, and support political stability by building trust in institutions. The delisting positions Nigeria as a regional leader in financial integrity, but lawmakers must focus on implementation to achieve lasting stability.