Decision takes effect January 2026, eases transactions for banks, exporters and fintechs
The European Union has officially removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing, a move expected to significantly ease cross-border transactions and strengthen investor confidence in Africa’s largest economy.
The update, published on the European Commission’s website, follows Nigeria’s earlier removal from the Financial Action Task Force (FATF) greylist in 2025, after the country implemented wide-ranging reforms to strengthen its anti-money laundering and counter-terrorism financing framework.
Under the new decision, enhanced due diligence requirements 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.
Explaining the update, the European Commission said it aligns with decisions taken by the FATF at its June and October 2025 plenary sessions, during which several countries were removed from the list of jurisdictions under increased monitoring.
“The EU has added new third-country jurisdictions to the list, including Bolivia and the British Virgin Islands, and delisted a number of others, namely Burkina Faso, Mali, Mozambique, Nigeria, South Africa and Tanzania,” the Commission stated.
It explained that institutions covered by the EU’s anti-money laundering framework are required to apply stricter checks when dealing with countries classified as high-risk. Nigeria’s removal means such heightened scrutiny will no longer apply to Nigerian-related transactions within the bloc once the regulation takes effect.
FG Welcomes Decision
Reacting to the development, the Minister of State for Finance, Doris Uzoka-Anite, described the decision as a major win for Nigeria’s economy and global standing.
In a post on X on Thursday, she wrote: “Big win for Nigeria! Removed from the EU’s financial ‘high-risk’ list.” She added, “Congratulations to President @officialABAT on this achievement. As Minister of State for Finance, I’m proud of this boost to trade and investor confidence.”
Also commenting, the Coordinating Minister of the Economy and Minister of Finance, Wale Edun, said Nigeria’s exit from the EU list sends a strong signal to global investors.
Speaking at the NESG 2026 Macroeconomic Outlook Presentation in Lagos on Thursday, Edun said, “Exiting the EU high-risk list is a landmark achievement for Nigeria. It sends a clear message that Nigeria is committed to maintaining a stable, transparent and credible business environment.”
Economic Implications
Nigeria’s removal from the EU high-risk list is expected to deliver significant economic and financial benefits. Countries on such lists typically face higher transaction costs, delayed payments, stricter correspondent banking relationships and reduced foreign investment flows.
With the lifting of enhanced due diligence requirements, Nigerian banks, exporters, fintech companies and other businesses transacting with European partners are expected to face fewer compliance hurdles. This could improve trade volumes, ease remittance flows and support increased capital inflows.
The decision also strengthens Nigeria’s credibility as it intensifies efforts to reform its financial system, curb illicit financial flows and deepen integration into global financial markets.
Nigeria was officially removed from the FATF greylist in October 2025, following reforms to its anti-money laundering and counter-terrorism financing regime.
The country was delisted alongside South Africa, Burkina Faso and Mozambique, all of which stepped up regulatory and enforcement efforts. Nigeria and South Africa were added to the FATF greylist in February 2023, Mozambique in October 2022, while Burkina Faso was first listed in February 2021.
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