The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has stated that Nigeria’s removal from the Financial Action Task Force grey list has prevented the potential loss of over $30 billion in investments
Speaking at the annual Bankers’ Dinner in Lagos hosted by the Chartered Institute of Bankers of Nigeria, Cardoso said that the development has revitalized global confidence in the nation’s financial system.
The CBN governor credited Nigeria’s removal from the FATF grey list to a coordinated national effort led by the Federal Government and the CBN.
He said, “Nigeria’s grey-listing carried a significant cost: countries in this category typically experience a 7.6% of GDP drop in capital inflows in the first year, for Nigeria, that translates to more than USD 30 billion in potential investment. Exiting the list, therefore, signals a major restoration of confidence and eases compliance frictions for correspondent banks.”
According to Cardoso, Nigeria implemented a robust action plan of reforms and institutional upgrades, directly targeting the weaknesses highlighted in the FATF’s evaluation.
He detailed that the reforms involved strengthening the supervision of financial institutions, enhancing the reporting of suspicious and cross-border transactions, and deepening inter-agency intelligence sharing.
He further noted that the deployment of modern tools like the Electronic Financial Evaluation Monitoring System and the Foreign Exchange Code was crucial for tightening oversight and ensuring greater transparency across the financial system.
In October, the global watchdog FATF removed Nigeria from its “grey list,” a move that ends the country’s nearly three-year status as a perceived hub for illicit funds and is expected to boost investor confidence.
Following intensified government efforts to combat financial crimes, Nigeria, alongside South Africa, Burkina Faso, and Mozambique, has been removed from the FATF grey list, a move that significantly bolsters confidence in Nigeria’s financial system and broader economy.
