BY GODWIN OBI
The European Union (EU) has officially removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing, a move expected to ease cross-border financial transactions and boost investor confidence.
The update, published on the European Commission’s website, follows Nigeria’s removal from the Financial Action Task Force (FATF) greylist in 2025 after the country implemented wide-ranging anti-money laundering and counter-terrorism financing reforms.
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 move, the European Commission said the update reflects decisions taken at the FATF plenary meetings in June and October 2025, during which several countries were removed from jurisdictions under increased monitoring.
“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 Commission stated.
It added that entities covered by the EU’s anti-money laundering framework are required to apply enhanced vigilance when dealing with countries on the high-risk list, noting that Nigeria’s removal means such heightened scrutiny will no longer apply once the regulation takes effect.
Reacting to the development, the Minister of State for Finance, Dr Doris Uzoka-Anite, described the decision as a major win for the country.
In a post on X on Thursday, she said, “Big win for Nigeria! Removed from the EU’s financial ‘high-risk’.” She congratulated President Bola Ahmed Tinubu on the achievement, noting that it would strengthen trade and investor confidence.
Also commenting, the Coordinating Minister of the Economy and Minister of Finance, Mr Wale Edun, said Nigeria’s exit from the EU list sends a strong signal to global investors.
Speaking in Lagos on Thursday at the NESG 2026 Macroeconomic Outlook Presentation, Edun said, “Exiting the EU high-risk list is a landmark achievement for Nigeria. It sends a clear signal to investors that Nigeria is serious about maintaining a stable, credible, and transparent business environment.”
Economic Implications
Nigeria’s removal from the EU high-risk list is expected to have significant economic and financial benefits. Countries designated as high-risk often face higher transaction costs, delayed payments, restricted correspondent banking relationships, and reduced foreign investment.
With the lifting of enhanced due diligence requirements, Nigerian banks, exporters, fintech firms and businesses transacting with European partners are expected to encounter fewer compliance hurdles—potentially improving trade flows, easing remittances and supporting capital inflows.
The decision also reinforces Nigeria’s credibility as it continues reforms aimed at strengthening its financial system and curbing illicit financial flows, at a time when the government is seeking to attract foreign investment and deepen integration into global financial markets.
Nigeria was removed from the FATF greylist in October 2025, alongside South Africa, Burkina Faso and Mozambique, after meeting the required benchmarks to strengthen anti-money laundering and counter-terrorism financing controls.
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