Nigeria’s financial credibility received a major boost this week after the Financial Action Task Force (FATF) officially removed the country from its grey list. The decision, which follows nearly three years of increased scrutiny over deficiencies in combating money laundering and terrorist financing, was immediately celebrated by the CEOs of Nigeria’s leading fintech companies.
Impact on Fintech and the Economy
The delisting signals renewed global confidence in Nigeria’s financial governance, paving the way for easier international transactions and increased foreign investment.
- Olugbenga Agboola, CEO of Flutterwave, emphasised the operational benefits. He stated that the grey listing had previously made cross-border payments and settlements “harder and more expensive.” He hailed the delisting for restoring confidence, lowering remittance and cross-border costs, and unlocking faster, cheaper payments to and from Nigeria.
- Tayo Oviosu, CEO of Paga, echoed the sentiment, calling it “the best news.” He highlighted the broader economic effect, stating it “opens up the country for FDI (Foreign Direct Investment) and engagement from the West.”
The move is expected to reduce compliance costs for financial institutions, improve access to global finance, and accelerate the flow of remittances, which average around $\text{\$20}$ billion annually.
Coordinated Reform Effort
The FATF’s decision validates the coordinated efforts by Nigerian institutions, including the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Ministry of Finance, to strengthen compliance frameworks and align with global standards.
Minister of Interior, Olubunmi Tunji-Ojo, reinforced this view, stating the delisting “reinforces confidence in Nigeria’s economy” and “validates the effectiveness of the government’s monetary and financial reforms.” Nigeria was delisted alongside South Africa, Burkina Faso, and Mozambique.
