Nigeria Exits FATF Grey List: How This Makes Diaspora Banking Easier for Nigerians Abroad

Nigeria has been officially removed from the Financial Action Task Force (FATF) grey list as of October 24, 2025, marking a significant turning point for the country’s financial ecosystem.
This decision, announced at the FATF plenary in Paris, comes after nearly three years of close monitoring that began in 2023. During that time, Nigeria was required to strengthen its systems to combat money laundering and terrorist financing.

This development is more than just a regulatory update — it has real, tangible benefits for Nigerians globally, especially those living abroad who rely heavily on cross-border banking, remittances, and investment flows.

What Is the FATF Grey List?

The FATF grey list includes countries that have weaknesses in their financial crime prevention systems. When a country is added to the list, it does not mean it is unsafe — rather, it means international financial bodies must apply extra checks on transactions involving that country.

For Nigeria, this meant:

Higher scrutiny from foreign banks

International banks had to apply stricter monitoring when processing Nigerian transfers, causing delays and increased costs.

Reduced investor confidence

Foreign investors tend to avoid jurisdictions under increased monitoring because of perceived risk.

More documentation requirements

Nigeria-linked transactions needed extra verification, leading to slower processing for remittances, school fees, business imports, and even personal transfers.

Higher transaction costs

Banks and payment providers passed compliance-related costs to customers, making transfers more expensive.

Exiting the grey list removes many of these frictions.

Why Did Nigeria Exit the Grey List?

This delisting did not happen overnight. Over the last two years, Nigeria has made significant improvements, including:

• stronger monitoring and reporting systems in banks

• better collaboration between financial institutions, law enforcement, and regulators

• updated AML/CFT compliance frameworks

• new digital verification tools

• enhanced training and policing of suspicious transactions

These changes convinced FATF that Nigeria has the capacity to maintain global standards.

Benefits of Nigeria’s Grey List Exit

The impact of Nigeria’s delisting will be felt across banks, fintechs, investors, and especially Nigerians living abroad.

Below are the major benefits, expanded fully.

1. Improved International Banking Relationships

One of the biggest advantages is that Nigeria is now seen as a lower-risk financial jurisdiction.

This translates into:

• Smoother correspondent banking relationships

Foreign banks will be more willing to partner with Nigerian banks, reducing disruptions to dollar transfers, card payments, and inflow settlements.

• Reduced transfer delays

Banks no longer need to apply enhanced due diligence on all Nigeria-linked transfers, making both inbound and outbound transfers much faster.

• Cheaper transactions

Since banks no longer incur extra compliance costs, they can pass the savings on to customers.

• Higher investor confidence

Institutional investors, who rely heavily on regulatory ratings, will find Nigeria more attractive.

2. Cheaper and Easier Diaspora Remittances

Nigeria receives over $20 billion in remittances every year — one of the largest in Africa.

With the grey list exit:

• IMTOs (Western Union, WorldRemit, Remitly, Sendwave, etc.) will reduce compliance-related fees

• Transfers will settle faster due to fewer manual checks

• Fewer documents will be requested from senders and receivers

• exchange processes become smoother

For many Nigerians abroad who send money home monthly, this means lower costs, less stress, and more predictability.

3. Faster International Transaction Processing

Before delisting, even simple transactions like:

• paying school fees

• sending upkeep money to family

• receiving freelance payments

• funding a Nigerian investment account

 It could take extra time because of manual verification.

Now:

• Fewer checks are needed

• Automated processing improves speed

• banks face fewer restrictions

This is especially important for diaspora Nigerians who need timely settlement for rent payments, visa renewals, and family obligations.

What This Means for Nigerians in the Diaspora

This section now includes expanded, richer explanations to provide depth and clarity.

1. Easier Account Opening (NRNIA & Diaspora Accounts)

The Non-Resident Nigerian Investment Account (NRNIA) is one of Nigeria’s most important diaspora banking tools.

With the grey list exit, expect:

• Simplified onboarding

Banks can now onboard diaspora Nigerians with fewer compliance obstacles because the perceived risk has reduced.

• Faster approval times

Account opening timelines, which previously took days or weeks, will now be significantly shorter.

• More banks are offering diaspora products

As risk reduces, more banks will expand their diaspora banking products, improving competition and service quality.

• Remote operation of accounts

Diaspora Nigerians can fully manage their accounts from abroad, including deposits, withdrawals, and investments.

2. Better Access to Investment Opportunities

Nigerians abroad can now more easily access the full range of Nigerian investment products, including:

• government bonds

• eurobonds

• treasury bills

• money market funds

• fixed income instruments

• equities and mutual funds

• high-yield Naira savings products

With reduced friction:

• Onboarding into investment platforms becomes easier

• Banks can process foreign inflows faster

• Investors face fewer compliance-related hold-ups

• The repatriation rules under NRNIA are easier to access

This strengthens ties between diaspora Nigerians and the local financial market.

3. Lower Remittance Fees

Remittance providers often add hidden costs to account for enhanced monitoring. Now:

• Those extra compliance costs disappear

• remittances become cheaper

• Forex spread margins become more favourable

• Customers may benefit from promotional transfer fees

With remittances being crucial for millions of Nigerian households, this is a major win.

4. Remote BVN Issuance & Easier Identification

One of the biggest barriers diaspora Nigerians faced was identification.

The integration of NIBSS NRBVN (Nigeria’s Remote BVN Validation Number system) now means:

• The diaspora can get a BVN online

• no need for in-branch verification

• Digital onboarding is faster and more secure

• Banks can verify identities instantly

This reduces the biggest friction point for opening diaspora accounts.

Financial Institutions’ Response

Banks, fintech innovators, and Bureau De Change operators have all responded positively.

Key changes happening now:

• Banks are updating risk models:  Lower risk means simpler processes, faster approvals, and reduced KYC hurdles.
  
  
• Better forex liquidity expected: As foreign partners ease restrictions, forex flows into Nigeria may improve.
  
  
• Fintechs will expand services: Reduced compliance overhead allows fintechs to introduce more diaspora-focused products.
  
  
• BDCs gain increased credibility: With lower scrutiny, BDCs may see more activity and smoother interactions with banks.

Overall, the financial industry is preparing for higher inflows, easier transfers, and a more open banking environment.

What Happens Next?

The CBN is not relaxing — the regulator is pushing for:

• continuous AML/CFT improvements

• better reporting systems

• stronger governance

• better-trained compliance teams

The goal is to ensure Nigeria never returns to the grey list and fully reaps the benefits of delisting.

Over the next 6–12 months, Nigerians can expect:

• more stable international payments

• more foreign fintech partnerships

• better card acceptance abroad

• smoother trade and import payments

• improved correspondent bank relationships

  
  

  FAQs

  Q1: Why was Nigeria on the FATF grey list?

  Nigeria was grey-listed due to gaps in anti-money laundering and counter-terrorism financing controls. The country has since addressed these deficiencies, leading to its removal in October 2025.

  Q2: What does Nigeria’s FATF delisting mean for diaspora Nigerians?

  It means lower remittance costs, easier access to NRNIA accounts, faster transfers, and better access to investment opportunities.

  Q3: Does Nigeria’s exit reduce international transfer delays?

  Yes. Banks will face fewer enhanced due diligence checks, speeding up cross-border payments.

  Q4: Will remittance fees drop after the grey list exit?

  Most providers are expected to reduce compliance-related charges, making transfers cheaper for Nigerians abroad.

  Q5: Is it now easier to open a Nigerian bank account from abroad?

  Yes. With remote BVN issuance and improved CBN frameworks, NRNIA and diaspora accounts are easier to open and operate.

  Q6: How does this affect investment opportunities for Nigerians abroad?

  Diaspora Nigerians now enjoy smoother access to government securities, money market funds, fixed income products, and equities—without the previous compliance bottlenecks.

Conclusion

Nigeria’s exit from the FATF grey list is more than a regulatory victory — it is a financial turning point.

For Nigerians abroad, it means:

• faster, cheaper remittances

• easier diaspora account opening

• better banking access

• stronger investment opportunities

• smoother cross-border payments

• remote BVN onboarding without physical presence

As remittance channels become more efficient and investment flows become easier, the economic relationship between Nigeria and its diaspora will only grow stronger.

To compare remittance options, open a diaspora account, or explore Nigeria-focused investments, visit nairaCompare to make informed financial decisions.