Nigeria Country Summary

FATF Status

Nigeria is on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Latest FATF Statement - 21 February 2025

Since February 2023, when Nigeria made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime, Nigeria has taken steps towards improving its AML/CFT regime, including by improving AML/CFT risk-based supervision of FIs and DNFBPs, ensuring that competent authorities have timely access to accurate and up-to-date beneficial ownership information on legal persons and demonstrating a sustained increase in ML and TF investigations and prosecutions in line with the country’s risk profile.. Nigeria should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) enhancing implementation of preventive measures for high-risk sectors; and (2) proactively detecting violations of currency declaration obligations and applying appropriate sanctions.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Nigeria was undertaken in 2024. According to that Evaluation, Nigeria was deemed Compliant for 13 and Largely Compliant for 23 of the FATF 40 Recommendations. It was assessed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Corruption is a significant barrier to economic growth in Nigeria, with the country ranking 145 out of 180 in Transparency International's 2023 Corruption Perception Index. The Economic and Financial Crimes Commission (EFCC) has made some progress in prosecuting financial crimes, achieving over 9,000 convictions since 2015, but challenges remain due to governance issues and limited resources. Additionally, various agencies, including the Independent Corrupt Practices and Other Related Offences Commission (ICPC), are working to address corruption through audits and public outreach, yet they face difficulties in enforcement and compliance, highlighting the need for further reforms and transparency in governance.

Nigeria, Africa's second-largest economy in 2023, saw a real GDP growth of 2.9%, following a 3.3% growth in the previous year, with forecasts suggesting a potential increase to 3.3% or 3.8% in 2024. However, the country faces significant challenges, including a record inflation rate of 28.9% driven by rising energy and food prices, and worsening poverty levels, with 46% of the population living in poverty as of 2023.

Nigeria's investment climate is characterized by significant challenges, including high levels of corruption, regulatory uncertainty, and an underdeveloped power sector, which deter both domestic and foreign investors. Despite these obstacles, the Nigerian Investment Promotion Commission (NIPC) allows for 100% foreign ownership in most sectors, and recent economic reforms aim to improve foreign currency inflows and investment opportunities. However, ongoing issues such as security concerns and bureaucratic inefficiencies continue to hinder the overall investment environment.