The Governor of the Central Bank of Nigeria, Olayemi Cardoso, stated that Nigeria’s exit from the Financial Action Task Force grey list has successfully restored global confidence in the nation’s financial system and prevented the economy from losing over $30 billion in potential investments.

The Governor made this significant disclosure on Friday during the annual Bankers’ Dinner, which was organized by the Chartered Institute of Bankers of Nigeria in Lagos.

Describing the removal as “one of the most significant achievements this year,” the CBN governor explained that Nigeria’s delisting from the grey list was the result of a coordinated nationwide effort led by the Federal Government, with crucial inputs from the CBN. He further highlighted the cost previously incurred, stating: “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.”

Cardoso detailed the rigorous process, explaining that Nigeria implemented a comprehensive set of reforms and institutional enhancements to effectively address the deficiencies identified by FATF during its on-site assessment. These reforms involved strengthening the supervision of financial institutions, improving the quality and consistency of reporting for suspicious and cross-border transactions, and deepening intelligence-sharing among relevant agencies. Furthermore, he added that the deployment of modern governance tools, including the Electronic Financial Evaluation Monitoring System and the Foreign Exchange Code, played a crucial role in tightening oversight and ensuring greater transparency across the financial system.

In October, the global watchdog, FATF, officially announced the removal of Nigeria from its grey list, ending nearly three years of the nation being tagged a destination for dirty money and signaling a significant boost for investor confidence in the nation’s economy. Nigeria was removed from the list alongside South Africa, Burkina Faso, and Mozambique after their respective governments stepped up efforts to combat money laundering and terrorist financing. Nigeria’s exit from the FATF grey list unequivocally represents a confidence boost for its financial system and broader economy.

In a related development, the Naira showed signs of stabilization and slight strengthening against the United States dollar following Nigeria’s exit from the FATF grey list. President Bola Tinubu also welcomed the delisting of Nigeria from the grey list of the FATF, describing the development as a clear demonstration of the country’s commitment to global financial transparency. The FATF is recognized as the world’s foremost standard-setting body responsible for combating money laundering, terrorist financing, and proliferation financing.