Nigeria has been formally removed from the European Union’s list of high-risk countries for money laundering and the financing of terrorism, marking a significant milestone in its financial reforms and efforts to rebuild trust with international partners.
The decision was announced by the European Commission this week and will take effect on 29 January 2026, after approval by the European Parliament and the Council.
Being on the “high-risk third-country jurisdictions” list means a country’s financial system was judged to have weaknesses in anti-money laundering (AML) and counter-terrorism financing (CFT) controls. While listed, transactions involving that country face stricter checks, higher compliance costs and closer scrutiny from EU banks and financial institutions. Formerly, Nigerian firms and banks encountered extra documentation and monitoring when working with European partners.
Nigeria was placed on the EU list largely because it had previously been on the Financial Action Task Force (FATF) grey list, which highlights jurisdictions with deficiencies in their AML/CFT regimes. However, after implementing extensive reforms, Nigeria exited the FATF grey list in October 2025.
The European Commission now says the country has sufficiently strengthened its financial crime laws and regulatory systems. Alongside Nigeria, five other African countries South Africa, Burkina Faso, Mali, Mozambique and Tanzania were also removed from the high-risk list following similar progress.
The Federal Government of Nigeria has welcomed the move as a major diplomatic and economic achievement. In an official statement, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the decision was the result of political will and sustained reform efforts led by President Bola Ahmed Tinubu and supported by key agencies, including the Nigerian Financial Intelligence Unit (NFIU) and law enforcement bodies.
According to the government statement, the delisting will help ease enhanced due diligence requirements that previously applied to Nigerian transactions with European entities, reducing barriers faced by exporters, importers and financial institutions. It is also expected to improve correspondent banking relationships and attract more foreign investment.
The Minister of State for Finance, Dr Doris Uzoka-Anite, described the development as a “big win for Nigeria,” saying it would boost investor confidence, trade and economic ties with Europe. She offered congratulations to the President and all Nigerians involved in the reform process.
Economists and business leaders have welcomed the move, suggesting it could reduce the cost of doing business with European partners and help stimulate cross-border trade. Some financial analysts say the delisting will make international payments and remittances smoother, improving overall economic activity.
While the removal from the EU list is a positive signal for Nigeria’s global financial reputation, the government has acknowledged that further work is needed to sustain and deepen reforms, continue fighting financial crime, and ensure long-term compliance with international standards.
