Terror Financing: EU Removes Nigeria from High-Risk List — NFIU

Nigeria has been officially taken off the European Union’s list of high-risk third countries for money laundering, terrorist financing and proliferation financing, a move that lifts enhanced scrutiny on financial transactions between Nigeria and EU member states.

The decision is contained in European Commission Delegated Regulation (EU) C (2025) 8460, adopted on December 4, 2025, and effective from January 29, 2026, in line with updates by the Financial Action Task Force (FATF) at its October 2025 Plenary.

The development was confirmed on Friday by the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Abubakar Bakari, in a statement.

The regulation also confirms the delisting of Burkina Faso, Mali, Mozambique, South Africa and Tanzania, following their removal from the FATF list of Jurisdictions under Increased Monitoring after addressing identified strategic AML/CFT deficiencies.

According to the European Commission, Nigeria and the other countries strengthened the effectiveness of their anti-money laundering and counter-terrorist financing regimes, closed key technical and operational gaps, and fulfilled commitments under their FATF Action Plans. These reforms led to their removal from the FATF grey list in June and October 2025.

Nigeria’s delisting reflects reforms implemented under President Bola Ahmed Tinubu, GCFR, whose administration prioritised financial system integrity, inter-agency collaboration and alignment with international standards. The process involved coordinated efforts by the National Assembly, law enforcement agencies, regulators, supervisors, the judiciary, the private sector and development partners.

Reacting to the decision, Bakari described it as validation of Nigeria’s reform agenda.

“This decision represents an important external validation of Nigeria’s steady progress in strengthening its AML/CFT/CPF framework. It demonstrates that consistent reforms, effective coordination and strong national ownership can translate into tangible international outcomes,” she said.

With Nigeria no longer classified as high-risk by the EU, financial transactions involving Nigerian and EU entities will no longer be subject to enhanced due diligence requirements. The NFIU said this is expected to ease compliance burdens, support cross-border financial flows and improve Nigeria’s appeal for trade and investment.

Bakari noted that the significance of the decision goes beyond regulatory relief.

“Beyond the immediate economic benefits, this outcome strengthens international confidence in Nigeria’s financial system and underscores our standing as a cooperative and responsible participant in the global financial architecture,” she said.

“This achievement is the product of collective national effort. While we welcome this progress, it also places a clear responsibility on all stakeholders to sustain momentum, guard against complacency and continue strengthening our systems in response to evolving financial crime risks,” she added.

The NFIU reaffirmed its commitment to continued engagement with the FATF, GIABA, the European Union and other international partners, as well as collaboration with domestic stakeholders to sustain compliance and further strengthen Nigeria’s AML/CFT/CPF framework.

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