Financial Action Task Force Grey List Exit Restores $30bn In Lost Investment Potential – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said Nigeria’s removal from the Financial Action Task Force (FATF) grey list has restored an estimated $30 billion in previously lost investment potential, reaffirming the country’s credibility in global financial markets. Cardoso stated this while addressing journalists following the announcement of Nigeria’s exit from the list, noting that the development marks a turning point for investor confidence and international financial cooperation.

Nigeria was placed on the FATF grey list due to concerns over anti-money laundering (AML) and counter-terrorist financing (CTF) compliance gaps. The classification had subjected Nigeria to increased monitoring, which created significant barriers for foreign investors, international banks, and development institutions engaging with the country. According to Cardoso, these restrictions had profound implications on capital flows, correspondent banking relationships, and cross-border transactions.

He explained that the country’s removal from the list followed months of coordinated efforts between the CBN, the Ministry of Finance, security agencies, financial intelligence units, and the private sector to strengthen compliance frameworks and improve transparency in financial operations. “Nigeria’s exit from the FATF grey list is a validation of the comprehensive reforms we have implemented across the financial system. It reopens access to an estimated $30 billion in investment potential that was constrained during the period of heightened monitoring,” Cardoso said.

Cardoso highlighted that global investors had become increasingly cautious about markets with AML and CTF deficiencies due to the risks of regulatory sanctions and compliance penalties. This, he said, meant investment proposals, trade finance agreements and sovereign risk assessments previously stalled due to Nigeria’s grey listing could now resume with renewed momentum. He added that major financial institutions that had adopted a “wait-and-see” approach could now re-engage the Nigerian market with confidence.

According to him, one of the major impacts of the grey listing was the withdrawal of some correspondent banking services, which made cross-border payments more complex and expensive. He noted that Nigeria’s removal from the list would restore these critical relationships and facilitate smoother transactions for businesses, exporters and financial institutions. “The financial system can now operate with far fewer impediments, and this directly benefits trade, capital inflows, and overall business confidence,” he stated.

Cardoso emphasised that the achievement was particularly significant as Nigeria had undertaken reforms across several sensitive sectors, including beneficial ownership transparency, customer due diligence frameworks, financial reporting standards, and law-enforcement collaboration. These reforms, he said, not only addressed FATF’s concerns but also strengthened Nigeria’s long-term financial stability and governance structure.

The CBN governor also stressed that the country’s grey list removal positions Nigeria more favourably in global financial assessments, including credit ratings, International Monetary Fund (IMF) reviews, and World Bank investment evaluations. “We anticipate a positive ripple effect across multiple indices. Our risk premium will reduce, financing windows will open wider, and Nigeria’s attractiveness as an investment destination will significantly increase,” he said.

Cardoso also revealed that the improved status would boost diaspora remittances, which form one of the country’s most critical foreign exchange inflows. Under the grey list regime, many global remittance service providers were required to impose stringent verification procedures, slowing transfers to Nigeria. With the country’s removal from the list, he said remittance services would now benefit from faster processing and reduced bottlenecks, potentially increasing annual inflows.

Similarly, he noted that Nigeria’s financial technology (fintech) sector — one of the largest in Africa — would also see immediate gains. According to him, compliance concerns had previously hindered partnerships between Nigerian fintechs and international payment platforms, venture capital firms, and technology service providers. “The fintech ecosystem, which thrives on cross-border innovation, will now see expanded access to global partnerships and funding streams,” he added.

Industry analysts at the briefing agreed that the development marks a major boost to Nigeria’s economic outlook. They noted that the removal strengthens the country’s ongoing fiscal and monetary reforms aimed at stabilising the naira, curbing inflation, and expanding the productive sector. Some experts, however, cautioned that Nigeria must sustain its momentum to avoid falling back into compliance challenges. They emphasised that continuous monitoring, sector-wide training and automated reporting systems remain essential to maintaining FATF standards.

Cardoso reassured stakeholders that the CBN would continue to work with financial institutions to ensure strict adherence to global AML and CTF regulations. He emphasised that Nigeria must use the opportunity to deepen reforms and modernise financial oversight systems to match the sophistication of global financial markets. “We have achieved this milestone, but sustaining it requires collective responsibility and a commitment to transparency across all institutions,” he said.

The CBN governor concluded that Nigeria’s exit from the FATF grey list marks a critical step in restoring global confidence in the country’s economy. With renewed investment potential, enhanced financial system credibility, and improved international cooperation, he said Nigeria is now better positioned to attract long-term capital and accelerate economic growth.