The European Union (EU) has officially removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing, ending years of heightened financial scrutiny that weighed on cross-border trade and investment.
The designation had required European banks and business partners to apply enhanced due diligence and stricter documentation to transactions involving Nigerian individuals and companies.
It was said that the measures slowed trade, raised compliance costs and discouraged some foreign investors.
The EU’s decision is expected to ease transaction bottlenecks, reduce the cost of doing business and strengthen Nigeria’s standing in the global financial system.
It follows a major milestone in October 2025, when Nigeria was removed from the Financial Action Task Force (FATF) grey list of countries under increased monitoring for weaknesses in financial oversight.
That delisting came after more than two years of reforms across the banking sector, law enforcement agencies and regulatory institutions.
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Reacting on social media, the Minister of State for Finance, Dr Doris Uzoka-Anite, described the EU’s move as a boost to investor confidence and a signal that Nigeria’s financial system now meets international standards on anti-money laundering and counter-terrorism financing.
Experts say the combined impact of Nigeria’s removal from both the EU high-risk register and the FATF grey list is important.
Banks and businesses are expected to face fewer barriers when processing international payments, while compliance costs linked to enhanced checks are likely to fall.
Foreign investors who had remained cautious due to perceived regulatory risks may now reassess Nigeria as a more credible investment destination.
Economists also point to potential gains for trade flows, portfolio investment and currency stability, revealing improved naira liquidity following Nigeria’s exit from the FATF grey list.
For local businesses, the development could translate into smoother access to global markets and reduced transaction friction, helping to integrate Nigeria more deeply into international value chains.
However, analysts caution that sustained reforms remain essential, noting that removal from the lists reflects measurable progress, not the elimination of financial risk, and warn that continued vigilance will be required to maintain international confidence.