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.
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:
International banks had to apply stricter monitoring when processing Nigerian transfers, causing delays and increased costs.
Foreign investors tend to avoid jurisdictions under increased monitoring because of perceived risk.
Nigeria-linked transactions needed extra verification, leading to slower processing for remittances, school fees, business imports, and even personal transfers.
Banks and payment providers passed compliance-related costs to customers, making transfers more expensive.
Exiting the grey list removes many of these frictions.
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.
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.
One of the biggest advantages is that Nigeria is now seen as a lower-risk financial jurisdiction.
This translates into:
Foreign banks will be more willing to partner with Nigerian banks, reducing disruptions to dollar transfers, card payments, and inflow settlements.
Banks no longer need to apply enhanced due diligence on all Nigeria-linked transfers, making both inbound and outbound transfers much faster.
Since banks no longer incur extra compliance costs, they can pass the savings on to customers.
Institutional investors, who rely heavily on regulatory ratings, will find Nigeria more attractive.
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.
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.
This section now includes expanded, richer explanations to provide depth and clarity.
The Non-Resident Nigerian Investment Account (NRNIA) is one of Nigeria’s most important diaspora banking tools.
With the grey list exit, expect:
Banks can now onboard diaspora Nigerians with fewer compliance obstacles because the perceived risk has reduced.
Account opening timelines, which previously took days or weeks, will now be significantly shorter.
As risk reduces, more banks will expand their diaspora banking products, improving competition and service quality.
Diaspora Nigerians can fully manage their accounts from abroad, including deposits, withdrawals, and investments.
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.
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.
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.
Banks, fintech innovators, and Bureau De Change operators have all responded positively.
Key changes happening now:
Overall, the financial industry is preparing for higher inflows, easier transfers, and a more open banking environment.
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
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.
It means lower remittance costs, easier access to NRNIA accounts, faster transfers, and better access to investment opportunities.
Yes. Banks will face fewer enhanced due diligence checks, speeding up cross-border payments.
Most providers are expected to reduce compliance-related charges, making transfers cheaper for Nigerians abroad.
Yes. With remote BVN issuance and improved CBN frameworks, NRNIA and diaspora accounts are easier to open and operate.
Diaspora Nigerians now enjoy smoother access to government securities, money market funds, fixed income products, and equities—without the previous compliance bottlenecks.
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.