The Central Bank of Nigeria (CBN) is actively working to secure Nigeria’s removal from the Financial Action Task Force’s (FATF) "grey list" by May 2025. This was announced by CBN Governor Yemi Cardoso during a briefing with stakeholders in Washington, D.C., following discussions at the World Bank and IMF annual summits.
Nigeria was added to the FATF's grey list on February 24, 2024, due to concerns over its efforts to combat money laundering and terrorism financing. The grey list subjects countries to increased scrutiny and necessitates strengthening their anti-money laundering frameworks.
Cardoso emphasized that the removal from the grey list is a priority for the CBN, stating, “We are focused on identifying and resolving any bottlenecks that hinder remittance flows through formal channels into Nigeria.” To facilitate this process, he highlighted ongoing consultations and strategic engagements with international stakeholders, including leading International Money Transfer Operators (IMTOs) and Nigeria's diaspora communities.
In line with these efforts, the CBN is aiming to increase remittances to $1 billion per month, a target that Cardoso described as both ambitious and achievable. “We have engaged with the diaspora to launch a non-resident account program in partnership with Nigerian banks, and our discussions with IMTOs have yielded commitments to enhance remittance flows,” he explained.
As of September 2024, Nigeria’s diaspora remittances rose to $600 million, up from $250 million in April 2024. Cardoso also announced plans to introduce a new product by year-end to simplify the registration of Bank Verification Numbers (BVNs) for Nigerians living abroad.
The CBN reiterated its commitment to addressing the strategic deficiencies noted by the FATF. Recent communications from the Nigerian Financial Intelligence Unit (NFIU) indicate that Nigeria’s fourth progress report has been approved by the FATF, marking a step forward in its compliance journey.
