The European Union has removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing, a move expected to significantly ease the flow of investment and trade between Europe and Africa’s most populous nation.
The European Commission confirmed that Nigeria, alongside five other African nations—South Africa, Burkina Faso, Mali, Mozambique, and Tanzania—has successfully strengthened its financial regulations to meet international standards.
According to the Commission, these countries no longer pose “strategic deficiencies” to the global financial system, following a series of reforms aligned with the Financial Action Task Force (FATF).
Cutting through red tape
The delisting is more than a symbolic victory; it removes significant practical hurdles for Nigerian businesses and banks.
While Nigeria was on the “high-risk” list:
- Stricter Checks: Every transaction with European partners was subject to “enhanced due diligence.”
- Documentation Delays: Banks faced mountains of additional paperwork, often slowing down cross-border payments.
- Investor Hesitancy: International firms were often wary of the legal and compliance risks associated with “high-risk” markets.
With this removal, Nigerian companies should see faster transaction times and lower compliance costs when dealing with the Eurozone.
A ‘big win’ for the economy
Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite, hailed the development as a major milestone for the current administration’s economic agenda.
“Big win for Nigeria! Removed from EU’s financial ‘high-risk’ list,” she wrote in a post on X (formerly Twitter) on Thursday. She added that the achievement would provide a significant “boost to trade and investor confidence” at a time when the country is seeking to attract more foreign direct investment.
The move comes as Nigeria continues to overhaul its financial sector to combat illicit money flows, a key requirement for re-entering the global financial fold.
The EU’s decision is seen as a vote of confidence in the country’s recent banking reforms and its improved transparency in tracking the “beneficial ownership” of companies.
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