Nigeria’s Bold Push to Exit FATF Grey List by May 2025: Inside the CBN’s Strategy

By Aminu Adamu

After being added to the Financial Action Task Force (FATF) grey list in February 2024, Nigeria faces unique challenges in managing remittances, attracting foreign investment, and restoring confidence in its financial system. The Central Bank of Nigeria (CBN) is now focused on reversing this designation by May 2025. This effort, led by Deputy Governor Aisha Ikeazor and CBN Governor Yemi Cardoso, has seen high-level international engagements, extensive compliance efforts, and a strong push for financial reforms aimed at addressing the concerns highlighted by the FATF.

The Grey List and Its Ripple Effects

For countries on the FATF grey list, the stakes are high. Being grey-listed indicates strategic deficiencies in a country's ability to combat money laundering and terrorist financing. It brings increased scrutiny from global financial institutions, affects remittance flows, and often leads to reduced foreign direct investment (FDI). Nigeria, alongside South Africa, joined the list on February 24, 2024, and since then, the country’s financial sector has felt the weight of this designation. The CBN has had to navigate these constraints while staying focused on its economic agenda.

"Sending money home has become practically challenging,” admitted Ikeazor during a meeting with the Nigerian diaspora at the IMF annual gathering in Washington D.C. “Driving remittance inflows and foreign direct investment is crucial, so we need to get off this grey list. We’ve done a lot of work to make this happen."

A Multi-Tiered Approach to Reclaim Financial Integrity

The CBN’s roadmap for a grey-list exit combines regulatory reforms, close collaboration with international financial bodies, and strategic partnerships with diaspora communities. A recent example was the launch of a non-resident account program with Nigerian banks, aimed at making it easier for diaspora Nigerians to send money back home through formal channels. This move is expected to improve compliance with FATF standards while boosting the country’s remittance figures.

Governor Cardoso has underscored this commitment to transparency, security, and growth. “Removing Nigeria from the FATF grey list is our priority,” Cardoso shared during the recent talks in Washington. “Our team is actively working to resolve any issues that impact remittance flows. We’re consulting at the highest levels, with significant progress in our recent engagements.”

In addition to regulatory adjustments, the CBN has intensified its work with International Money Transfer Operators (IMTOs), forming a task force to explore and implement strategies for enhancing formal remittance channels. The bank is targeting a $1 billion boost in remittance flows, a goal the CBN calls both “ambitious and achievable.” This initiative, combined with extensive outreach to Nigerian communities abroad, is designed to drive sustainable progress in remittances—a vital part of the country’s economic health.

Nigeria’s Path to Financial Redemption

The grey-list status marks a commitment by Nigeria to address identified deficiencies within agreed timelines. In recent months, the Nigerian Financial Intelligence Unit (NFIU) has been working closely with the CBN, providing the FATF with quarterly progress reports on compliance initiatives. In its latest report, the NFIU confirmed that FATF has approved the fourth round of assessments, signaling Nigeria’s progress toward meeting international standards.

“We’re making the necessary reforms to demonstrate Nigeria’s commitment to financial integrity,” Ikeazor noted. “The grey list isn’t a permanent designation; it’s a call to action. We’re working to show the world that Nigeria is serious about meeting and maintaining these standards.”

Broader Implications for Nigeria's Economy

Exiting the FATF grey list is not just a compliance issue; it’s a transformative goal for Nigeria’s economy. Improved ease of remittance flow is expected to stimulate other areas of the financial sector, making the country more attractive for foreign investors, facilitating job creation, and stabilizing exchange rates. For the CBN, removing Nigeria from the grey list also represents a step toward repositioning Nigeria as a leader in the African financial landscape.

As Cardoso and Ikeazor continue their efforts, the May 2025 target remains ambitious. However, their structured approach, which balances regulatory compliance with grassroots engagement, shows a clear path forward. Should Nigeria succeed, its removal from the FATF grey list would not only restore its standing but also pave the way for a stronger, more resilient economy.