The European Union has officially removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing, a move expected to ease cross-border transactions and bolster investor confidence, the European Commission said.
The decision follows Nigeria’s exit from the Financial Action Task Force (FATF) greylist in 2025 after a series of reforms to strengthen anti-money laundering (AML) and counter-terrorism financing frameworks. Under the EU update, enhanced due diligence requirements previously applied to transactions involving Nigeria will be lifted from January 29, 2026, subject to procedural approval by the European Parliament and the Council of the European Union.
“The EU has added new third-country jurisdictions to the list (Bolivia and the British Virgin Islands) and delisted a number of others (Burkina Faso, Mali, Mozambique, Nigeria, South Africa and Tanzania),” the European Commission said. It noted that entities covered by the EU’s AML framework must maintain enhanced vigilance when dealing with countries on the high-risk list. Nigeria’s removal means such heightened scrutiny will no longer apply once the regulation takes effect.
Reacting to the move, Minister of State for Finance, Dr Doris Uzoka-Anite, described it as a major achievement for the country. In a post on X, she wrote: “Big win for Nigeria! Removed from the EU’s financial ‘high-risk’ list. Congrats to President @officialABAT on this achievement. As Minister of State for Finance, I’m proud of this boost to trade and investor confidence.”
Coordinating Minister of the Economy and Minister of Finance, Mr Wale Edun, echoed the sentiment, calling Nigeria’s exit a landmark accomplishment. Speaking in Lagos at the NESG 2026 Macroeconomic Outlook Presentation, he said: “Exiting the EU high-risk list sends a clear signal to investors that Nigeria is serious about maintaining a stable, credible, and transparent business environment.”
Analysts say the delisting could have far-reaching economic and financial implications. Countries classified as high-risk often face higher transaction costs, delayed payments, tighter correspondent banking relationships, and reduced foreign investment. By lifting enhanced due diligence requirements, Nigerian banks, exporters, fintechs, and other businesses transacting with European partners are expected to encounter fewer compliance hurdles, improving trade flows, easing remittances, and supporting capital inflows.
Nigeria’s removal also reinforces the country’s credibility as it seeks to reform its financial system and curb illicit financial flows. The government has been actively promoting reforms aimed at attracting foreign investment, integrating more fully into global financial markets, and strengthening domestic regulatory frameworks.
The FATF had greylisted Nigeria in February 2023 alongside South Africa, while Mozambique and Burkina Faso were also previously designated for heightened monitoring. Nigeria’s exit came after the country implemented reforms including stricter monitoring of financial transactions, improved enforcement mechanisms, and enhanced reporting and risk assessment procedures across financial institutions.
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The delisting follows similar moves by the FATF and the EU for several other countries, including South Africa, Burkina Faso, and Mozambique, all of which demonstrated progress in combating money laundering and terrorist financing. Analysts say Nigeria’s removal from the EU’s high-risk list is likely to encourage renewed foreign investment, strengthen trade partnerships, and signal growing international confidence in the country’s regulatory and financial governance.
The European Commission update is part of a routine review of jurisdictions under its anti-money laundering framework, reflecting decisions made during FATF plenaries in June and October 2025. The Commission stressed that countries added to the list are subject to heightened monitoring, while those removed have met international standards in risk mitigation.
The EU decision is widely regarded as a milestone for Nigeria’s financial sector, reinforcing the country’s long-term efforts to enhance transparency, reduce illicit financial flows, and provide a safer environment for international trade and investment.
