By FATF Grey List
Nigeria’s intensified airport security fuels optimism over exit
Summary
- FAAN, Customs, and other agencies boost airport checks to curb illicit financial flows
- Stakeholders confident ahead of FATF inspection, but concerns persist over unmet benchmarks
- Grey listing linked to drop in foreign investment, rising business costs
Abuja, Nigeria – Nigeria’s renewed push to exit the Financial Action Task Force (FATF) Grey List has prompted significant airport security upgrades, earning cautious praise and optimism from stakeholders across the public and private sectors.
The country has been on the Grey List since February 2023 over deficiencies in its frameworks for combating money laundering, terrorism financing, and proliferation financing.
The Federal Airports Authority of Nigeria (FAAN) and the Nigeria Customs Service (NCS) are spearheading the drive, rolling out enhanced screening protocols and currency declaration enforcement at key airports.
At Murtala Muhammed International Airport in Lagos, Customs officials have intensified collaboration with the Economic and Financial Crimes Commission (EFCC), Nigerian Financial Intelligence Unit (NFIU), and other agencies to curb illicit flows.
Officials from FAAN, NCS, and NFIU have expressed confidence that current reforms meet FATF standards, with a crucial inspection team expected soon.
Comptroller General of Customs Adewale Adeniyi said the integration of surveillance technology and stakeholder cooperation would help Nigeria meet its commitments. The NFIU also affirmed that the FATF had approved the country’s fourth progress report, signalling recognition of improved financial controls.
Industry experts and some business leaders welcomed the developments. “This shows Nigeria is serious about restoring investor confidence,” said Adedayo Odu, a financial compliance analyst. “The FATF listing has hurt cross-border transactions. Any steps to address that are welcome.”
However, not all reactions have been enthusiastic. Critics argue that while airport reforms are essential, they represent only part of the broader action plan.
“We still need more progress on prosecuting money laundering cases and ensuring beneficial ownership transparency,” warned Bolaji Akinrinade, a governance consultant. “A few e-Gates won’t move the FATF needle on their own.”
Nigeria had committed to completing all action plan items by May 2025, and officials claim that nearly half have been achieved. These include improvements in international cooperation, oversight of non-profit organisations, and asset recovery. Yet, concerns remain about regulatory gaps in non-financial sectors and the need for better risk-based supervision.
The urgency to exit the Grey List is driven not only by reputational damage but also by tangible economic consequences. Nigeria has experienced a decline in foreign direct investment (FDI), with only $525.78 million recorded between Q1 2023 and Q2 2024. The second quarter of 2024 saw FDI drop to $29.83 million.
Local and international companies also report increased compliance burdens and difficulty processing international transactions. “Being on the Grey List raises red flags for global financial institutions,” explained an executive at a Lagos-based fintech firm. “It’s hurting the ease of doing business.”
Despite the mixed reactions, government officials remain upbeat. Inter-agency coordination has improved, with backing from President Bola Ahmed Tinubu and the establishment of a national data framework by NFIU and NITDA. Reforms to the Investment and Securities Act 2025 and enhanced Know Your Customer (KYC) requirements are also part of the strategy.
As the May 2025 deadline looms, Nigeria’s ability to sustain its momentum and deliver on FATF’s remaining demands will determine whether it can finally shed the Grey List label. For now, intensified airport surveillance stands as both a symbol and a test of the country’s anti-money laundering resolve.
