EU removes Nigeria from high-risk financial list

Nigeria has been removed from the European Union’s list of high-risk jurisdictions, a development expected to ease trade, payment processes and investment flows between the country and Europe.

According to a report by Business Insider on Wednesday, the European Commission confirmed that Nigeria, alongside South Africa, Burkina Faso, Mali, Mozambique and Tanzania, had made significant improvements to their Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) frameworks.

The commission stated that the affected countries no longer pose “strategic deficiencies” under the EU’s assessment standards, noting that the reforms implemented have aligned their financial systems with international benchmarks set by the Financial Action Task Force (FATF).

Reacting to the development, the Minister of State for Finance, Dr Doris Uzoka-Anite, described Nigeria’s removal from the list as a major boost to the country’s economy and investor confidence.

In a post on X on Thursday, she wrote: “Big win for Nigeria! Removed from EU’s financial ‘high-risk’ list! Congrats to President @officialABAT on this achievement.

As Minister of State for Finance, I’m proud of this boost to trade and investor confidence.”

Nigeria’s inclusion on the EU high-risk list had previously meant that transactions involving European partners were subjected to enhanced due diligence, stricter documentation requirements and increased regulatory oversight.

As a result, Nigerian banks and businesses faced heightened scrutiny, leading to delays in cross-border transactions and challenges in attracting foreign investment.

The country’s removal from the list is therefore expected to improve financial flows and strengthen economic ties with the European Union.