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 remains 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 strides in prosecuting financial crimes, achieving over 9,000 convictions since 2015, but enforcement of anti-corruption laws is often undermined by weak governance and resource constraints. Despite some progress in transparency initiatives and legal frameworks, pervasive corruption, particularly in the oil sector, continues to challenge both domestic and foreign businesses.

Nigeria, Africa's second largest economy in 2023, experienced 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 reforms aimed at improving foreign direct investment (FDI), including the liberalization of the foreign exchange market and the establishment of the Nigerian Investment Promotion Commission (NIPC) to facilitate business operations. However, challenges such as high inflation, corruption, and security concerns continue to deter investors. Despite these obstacles, the government offers various incentives for foreign investors, including tax holidays for pioneer industries and guarantees against expropriation.