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 strides in prosecuting financial crimes, achieving over 9,000 convictions since 2015, but faces challenges such as lack of independence and resources. Despite some progress in governance reforms and anti-corruption measures, systemic issues persist, including inadequate enforcement mechanisms and widespread bribery, particularly in public procurement processes.

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 growth rate of about 3.3% in 2024. However, the country faces significant challenges, including a 28-year high inflation rate of 28.9% driven by rising energy prices and food costs, alongside worsening poverty levels, which increased from 44% to 46% of the population, affecting approximately 104 million people.

Nigeria's investment climate is characterized by significant challenges, including high levels of corruption, regulatory uncertainty, and security concerns, which deter both domestic and foreign investors. Despite these obstacles, the Nigerian Investment Promotion Commission (NIPC) facilitates foreign direct investment by allowing 100% foreign ownership in most sectors and providing tax incentives, although practical barriers such as domestic equity requirements and bureaucratic inefficiencies persist. Recent economic reforms, including the liberalization of the foreign exchange market, aim to improve investor confidence and attract foreign capital, but ongoing issues such as inflation and infrastructural deficits continue to pose risks.