The President of the Capital Market Academics of Nigeria (CAMAN), Prof. Uche Uwaleke, has commended the removal of Nigeria from the Financial Action Task Force (FATF) grey list, describing the development as a major milestone that will enhance the country’s global financial reputation, attract foreign investments, and improve access to international funding.
In a statement issued in Abuja, Uwaleke said the delisting of Nigeria from the FATF grey list is “a welcome and cheering development,” noting that it sends a strong signal of confidence to the international financial community that the country has made substantial progress in strengthening its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
He emphasized that the FATF, an inter-governmental body established in 1989, coordinates global efforts to combat money laundering, terrorist financing, and proliferation financing.
Countries placed on the grey list are those found to have strategic deficiencies in their AML/CFT systems and are therefore subjected to increased monitoring.
Uwaleke explained that being on the FATF grey list often has far-reaching economic and reputational consequences for a country.
According to him, grey listing effectively increases the perception of country risk, sending negative signals to investors and international financial institutions.
“When the FATF grey-lists a country, it means that the country has significant deficiencies in its AML/CFT framework and is under enhanced scrutiny.
“This status often sends ripples through the global financial system and raises the country’s risk profile,” he said.
He noted that once a country is grey-listed, foreign investors typically reassess their risk exposure, often pulling back or demanding higher risk premiums.
Likewise, international banks tighten compliance procedures, increase due diligence on transactions, or in some cases, limit or even sever correspondent banking relationships.
Uwaleke also pointed out that multilateral institutions such as the International Monetary Fund (IMF) and the World Bank rely on FATF assessments as part of their criteria for providing loans, grants, or technical assistance.
“Even private compliance systems, such as SWIFT, automatically flag transactions from grey-listed countries as high-risk,” he added.
The delisting, he said, therefore, has far-reaching positive implications for Nigeria’s financial system, trade, and investment landscape.
“Being taken off the FATF grey list represents a major trust signal to investors and Nigeria’s trading partners,” he remarked.
According to him, the move will enhance Nigeria’s access to global finance and encourage renewed engagement from international development partners, credit rating agencies, and foreign investors who may have been previously cautious.
“This decision is good news for Nigeria’s international image and credibility. It signals to investors, banks, and rating agencies that the country has strengthened its anti-money laundering and counter-terrorist financing regime. Consequently, the perception of Nigeria as a high-risk jurisdiction for cross-border financial flows is now reduced,” he explained.
With improved global trust, Uwaleke anticipates a gradual return of foreign direct investment (FDI) inflows, which have been on the decline in recent years.
He added that the improvement in Nigeria’s risk profile could lead to lower borrowing costs for domestic companies and possibly reduce yields on government securities as investors demand less risk premium.
Speaking further, Uwaleke said the capital market stands to benefit immensely from the development.
He said, “As investor confidence rises, demand for Nigerian securities— both debt and equities — is expected to increase, which could translate into better valuations and a stronger overall market performance.
“As risk perception lowers, domestic companies raising debt capital might be able to do so at lower costs. Similarly, Nigerian issuers will find it cheaper to access the global debt markets. In the long run, improved investor sentiment could help tighten spreads, reduce yields, and improve equity valuations.”
He added that such developments are vital for sustaining macroeconomic stability, especially at a time when the country is seeking to diversify its sources of capital inflow and reduce dependence on oil revenue.
Uwaleke highlighted that Nigeria’s removal from the FATF grey list also strengthens its position as a leading financial hub in Africa, particularly within the Economic Community of West African States (ECOWAS).
“This achievement underscores Nigeria’s growing influence within ECOWAS and across Africa. It is a validation of the country’s strong institutional capacity and commitment to international best practices in combating financial crimes,” he noted.
Despite the positive news, Uwaleke cautioned that the removal from the FATF grey list should not lead to complacency.
He stressed that while the decision shows Nigeria has substantially addressed the identified deficiencies, more work remains to be done to ensure sustainability and continuous improvement.
“Being delisted is not the end of expected reforms. It only means that the country has met the minimum global standards at this point. The challenge for Nigeria going forward is to maintain and strengthen these reforms — legally, institutionally, and operationally — to ensure we never return to the FATF grey list,” he warned.
He urged relevant government agencies, including the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC), to remain vigilant and continue enforcing robust compliance mechanisms across the financial system.
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