European Union Officially Delists Nigeria from High-Risk Financial Jurisdictions
In a significant development for the nation’s financial standing, the European Union has formally removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing. This decision, which also applies to South Africa, Burkina Faso, Mali, Mozambique, and Tanzania, aligns with the recent delisting of these nations by the Financial Action Task Force (FATF) from its “grey list” in 2025. The move is a direct result of Nigeria’s successful implementation of comprehensive reforms to strengthen its anti-money laundering and counter-terrorism financing (AML/CFT) framework.
Timeline and Economic Implications of the Delisting
The enhanced due diligence requirements imposed on transactions involving Nigeria are set to be lifted from January 29, 2026, pending final procedural approval by the European Parliament and the Council. This delisting is expected to substantially ease cross-border transactions, reduce compliance costs for businesses and financial institutions, and improve overall investor confidence. The classification as a high-risk jurisdiction had previously contributed to higher transaction costs, delayed payments, and restricted correspondent banking relationships. This positive shift occurs alongside other critical financial discussions in the region, such as when African startups raise capital and debates on whether Nigeria’s oil output meets targets, underscoring a complex but evolving economic landscape.
The European Commission confirmed that this update reflects the FATF’s decisions during its June and October 2025 plenaries. Nigeria, alongside South Africa, had been added to the FATF grey list in February 2023, following increased monitoring. The recent delisting marks the culmination of a sustained governmental effort to address identified strategic deficiencies. While the Nigerian Presidency has yet to issue an official statement, the Minister of State for Finance, Dr. Doris Uzoka-Anite, celebrated the development on social media as a major achievement and a boost for trade. This news reinforces the narrative that Nigeria is not failing in its efforts to meet international financial standards, even as it navigates other sectors where entities like Universal Insurance seek growth and global brands make strategic decisions.
Concurrently, the EU added Bolivia and the British Virgin Islands to its high-risk list. The delisting of Nigeria represents a pivotal step in reintegrating the country into the global financial system with fewer restrictions, potentially catalyzing greater foreign investment and economic stability. This progress stands in contrast to other global business headlines, such as when Real Madrid withdraw from a tournament, highlighting the multifaceted nature of international news and finance.
