Nigeria has been removed from the Financial Action Task Force’s (FATF) “grey list,” the Paris-based watchdog said Friday.
The FATF announced that Nigeria will no longer be a country of interest with respect to cross-border money transfers, following the country’s moves to tighten its systems and strengthen laws that checkmate money laundering and the financing of terrorism.
The FATF puts countries on the grey list when it wants them to fix gaps in how they track dirty money.
Nigeria was placed on that list in past years and worked with the FATF to meet an agreed plan of reforms.
The FATF’s updated list of grey-listed countries, published on Friday on its website, shows Nigeria among several countries now removed.
Some Nigerian officials say the delisting should help Nigeria attract more foreign money and make it cheaper for businesses and banks to borrow.
Economists expect eased restrictions on trade finance and cross-border payments to help companies that import and export goods.
Markets may react positively because investors often see removal from the grey list as a signal of stronger financial rules.
The presidency welcomed the decision. A State House statement credited political will and reforms under President Bola Tinubu for meeting FATF requirements, while claiming that the change would boost confidence in Nigeria’s financial system.
For everyday Nigerians, this means that banks could facilitate cross-border payments better, eliminating all the hoops they had to pass through to make such transactions before Nigeria’s delisting.
Companies, on the other hand, may find it easier to get loans from foreign lenders.
The FATF will continue to monitor countries to make sure they keep improving.
