Nigeria is set for a significant boost in trade and foreign investment following its removal from the European Union’s (EU) list of high-risk countries for financial crimes, a development experts say will strengthen investor confidence and lower the cost of doing business with Europe.

The delisting, which takes effect from January 29, 2026, follows Nigeria’s successful exit from the Financial Action Task Force (FATF) greylist, marking a major milestone in the country’s reforms to combat money laundering and terrorist financing. With the new status, financial transactions between Nigeria and EU member states will no longer be subjected to enhanced due diligence, a process that had slowed trade flows and increased compliance costs for businesses and financial institutions.

Confirming the development, the Minister of State for Finance, Dr. Doris Aniete, described the move as a “big win” for Nigeria and a strong boost to trade and investor confidence.

In a post on her X page on Thursday, she congratulated President Bola Ahmed Tinubu on the achievement.

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.”

Analysts say the decision sends a powerful signal that Nigeria’s financial system is gaining international credibility, making the country more attractive to global investors and trade partners.

“This is a major reputational win for Nigeria,” said economist Damien Ohuakanwa. “Being on the EU high-risk list meant Nigerian transactions were treated with suspicion, causing delays and higher costs. Removal from the list improves confidence in our financial system and makes trade with Europe faster and cheaper.”

The EU high-risk list identifies countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks. Nigeria’s inclusion had long been a concern for exporters, importers, banks and foreign investors, who faced stricter scrutiny in cross-border transactions and higher compliance burdens.

With the lifting of enhanced due diligence requirements, Nigerian businesses are expected to enjoy smoother and quicker access to European markets, while European firms may find it easier and less risky to invest in Africa’s largest economy.

“This development will support increased capital inflows, especially in sectors such as manufacturing, agriculture, energy and fintech,” Ohuakanwa said.

“It also improves Nigeria’s competitiveness against peer African economies that are already considered low-risk jurisdictions.”

The Federal Government has repeatedly stated that strengthening financial integrity and transparency is central to its economic reform agenda. Officials believe Nigeria’s exit from both the FATF greylist and the EU high-risk list reflects the impact of sustained policy actions, stronger regulatory oversight and improved coordination among financial and security agencies.

Beyond reputational gains, the economic implications are wide-ranging. Lower transaction costs, faster payment processing and reduced compliance hurdles are expected to encourage Nigerian exporters, particularly in non-oil sectors, to expand their presence in European markets. At the same time, foreign direct investment is likely to rise as global investors perceive reduced regulatory and reputational risks.

For the banking sector, the development is equally significant. Nigerian banks are expected to find it easier to maintain and expand correspondent banking relationships with European institutions, which are vital for international payments, trade finance and cross-border investments.

“This sends a powerful message that Nigeria is serious about financial reforms,” a banking industry source said. “It positions the country as a safer and more reliable partner in global finance.”

As Africa’s largest economy, Nigeria’s improved standing in the international financial system could also enhance its leadership role on the continent, encouraging deeper integration into global trade and investment networks.

Stakeholders agree that while the delisting represents a major achievement, sustaining the gains will require continuous commitment to transparency, regulatory enforcement and financial sector reforms. If maintained, the momentum could translate into stronger economic growth, higher investment inflows and expanded trade opportunities for Nigeria in the years ahead.

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