THIS DAWN — On 29 January 2026, the European Union (EU) officially removed Nigeria from the EU’s Financial High-Risk Third-Country list.
Other countries removed from the list are South Africa, Burkina Faso, Mali, Mozambique, and Tanzania.
This milestone follows Nigeria’s successful exit from the Financial Action Task Force (FATF) grey list in October 2025.
The decision reflects Nigeria’s sustained progress in implementing Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) reforms.
It reinforces the country’s credibility in the global financial system.
Background
- FATF Grey List Exit (October 2025): Nigeria demonstrated compliance with international AML/CFT standards, leading to its removal from FATF’s monitoring list.
- EU Alignment: The EU’s decision mirrors FATF’s recognition of Nigeria’s reforms, ensuring consistency in global financial oversight.
- Previous Status: Nigeria had been categorized as a high-risk jurisdiction, which subjected its financial transactions to enhanced scrutiny within the EU.
The official EU publication confirming Nigeria’s removal from the Financial High-Risk Third-Country list is the Commission Delegated Regulation (EU) 2026/83 of 4 December 2025.
It was published in the Official Journal of the European Union on 9 January 2026.
Key Details from the EU Regulation
- Legal Act: Commission Delegated Regulation (EU) 2026/83.
- Date Adopted: 4 December 2025.
- Publication Date: 9 January 2026.
- Effective Date: 29 January 2026.
Content:
- Removes Nigeria, South Africa, Burkina Faso, Mali, Mozambique, and Tanzania from the EU’s list of high-risk third countries.
- Adds Bolivia and the British Virgin Islands to the list.
The decision was based on the alignment with FATF’s October 2025 plenary decision, recognizing Nigeria’s AML/CFT reforms.
Key Implications
1. Investor Confidence
- Removal from the EU’s list signals stronger financial governance.
- Encourages foreign direct investment (FDI) and portfolio inflows.
- Positions Nigeria as a more attractive destination for global capital.
2. Ease of Transactions
- Reduced compliance burdens for Nigerian banks and businesses operating with EU counterparts.
- Lower transaction costs and faster cross-border payments.
- Improved access to European financial markets.
3. Strengthened Global Standing
- Reinforces Nigeria’s reputation as a reform-driven economy.
- Enhances credibility in international negotiations and trade agreements.
- Aligns Nigeria with other compliant jurisdictions, boosting its influence in global financial governance.
4. Legal Certainty:
This is the binding EU legal instrument, not a media report.
5. Procedural Note:
As with all delegated acts, the European Parliament and Council had a scrutiny period before entry into force.
Strategic Outlook
- Sustained Reforms: Continued vigilance in AML/CFT enforcement will be critical to maintaining this status.
- Regional Leadership: Nigeria’s progress sets a precedent for other African nations striving to exit high-risk classifications.
- Economic Growth: Improved investor sentiment and smoother financial flows are expected to contribute positively to Nigeria’s GDP growth trajectory.
The EU’s removal of Nigeria from its Financial High-Risk Third-Country list marks a turning point in Nigeria’s financial integration with Europe and the wider global economy.
It validates Nigeria’s reform agenda, strengthens investor confidence, and eases international transactions—ultimately advancing Nigeria’s economic resilience and global financial standing.
