Nigeria Removed from EU High-Risk Terror Financing List, NFIU Confirms

Nigeria has been officially removed from the European Union’s list of high-risk third countries for money laundering, terrorist financing, and proliferation financing, a move expected to ease strict financial scrutiny on transactions between Nigeria and EU member states.

The decision is contained in the European Commission Delegated Regulation (EU) C (2025) 8460, which was adopted on December 4, 2025, and is scheduled to take effect from January 29, 2026. The update aligns with decisions taken by the Financial Action Task Force (FATF) at its October 2025 Plenary meeting.

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

According to the regulation, Nigeria’s removal follows similar delisting decisions involving Burkina Faso, Mali, Mozambique, South Africa, and Tanzania. These countries were taken off the EU high-risk list after exiting the FATF’s list of Jurisdictions under Increased Monitoring, having addressed key strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.

The European Commission stated that Nigeria and the other affected countries strengthened the effectiveness of their AML/CFT regimes, closed critical technical and operational gaps, and fulfilled commitments outlined in their respective FATF Action Plans. These improvements led to their removal from the FATF grey list in June and October 2025.

Nigeria’s delisting reflects a series of reforms implemented under the administration of President Bola Ahmed Tinubu, which focused on strengthening financial system integrity, improving inter-agency coordination, and aligning national frameworks with international standards.

The reform process involved collaboration among the National Assembly, law enforcement agencies, financial regulators and supervisors, the judiciary, private sector stakeholders, and international development partners.

Reacting to the development, Bakari said the decision serves as international recognition of Nigeria’s sustained reform efforts.

She noted that the outcome represents an important validation of Nigeria’s progress in strengthening its AML/CFT and counter-proliferation financing framework, adding that consistent reforms, effective coordination, and strong national ownership have translated into tangible international results.

With Nigeria no longer classified as a high-risk jurisdiction by the European Union, financial transactions involving Nigerian and EU-based entities will no longer be subject to enhanced due diligence requirements.

The NFIU said this is expected to reduce compliance burdens, facilitate smoother cross-border financial flows, and improve Nigeria’s appeal as a destination for trade and investment.

Bakari said the significance of the delisting extends beyond regulatory relief, noting that it strengthens international confidence in Nigeria’s financial system and reinforces the country’s standing as a cooperative and responsible participant in the global financial architecture.

She added that while the development marks a major milestone, it also places a responsibility on all stakeholders to sustain reform momentum, avoid complacency, and continue strengthening systems to address evolving financial crime risks.

The NFIU reaffirmed its commitment to ongoing engagement with the FATF, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), the European Union, and other international partners. It also pledged continued collaboration with domestic stakeholders to sustain compliance and further strengthen Nigeria’s AML/CFT and counter-proliferation financing framework.