Nigeria, 5 Other African Countries Removed From EU Financial High-Risk List

Nigeria has been removed from the European Union’s list of “high-risk third-country jurisdictions” for money laundering and terrorism financing alongside South Africa, Burkina Faso, Mali, Mozambique, and Tanzania, marking a significant step in the continent’s efforts to clean up compliance reputations and ease cross-border financial friction.

The EU listing matters because it triggers enhanced due diligence obligations for banks and other regulated firms in Europe when they process transactions involving countries on the high-risk register. 

In practice, that usually means stricter documentation demands, more compliance back-and-forth, and longer settlement timelines, costs that often get passed on to businesses and customers.

Why the EU removed Nigeria and the other five countries

The delisting is tied directly to reforms in anti-money laundering and counter-terrorism financing (AML/CFT) controls, and to progress recognized under the global standards set by the Financial Action Task Force (FATF). 

The EU update was implemented through a Commission Delegated Regulation that removed Burkina Faso, Mali, Mozambique, Nigeria, South Africa and Tanzania from the high-risk list.

For Nigeria, the EU decision follows the country’s earlier exit from the FATF “grey list” (formally called jurisdictions under increased monitoring). FATF confirmed Nigeria’s delisting in late October 2025 after the country completed its action plan and addressed the weaknesses that had kept it under enhanced monitoring.

Nigeria’s Federal Ministry of Finance framed the EU delisting as further confirmation that reforms are sticking and that the country is repositioning for cleaner, more trusted financial flows.

What changes from January 29, 2026

A key detail for businesses is the effective date. While the delegated regulation was adopted in December 2025 and later published, it is expected to take effect on January 29, 2026, meaning the EU’s special “high-risk country” enhanced due diligence requirement should no longer apply to Nigeria-related transactions strictly on the basis of Nigeria being listed.

This does not mean European banks will stop compliance checks altogether. It means Nigeria will no longer be treated as automatically high-risk under the EU’s country list framework; institutions will still apply their usual risk-based controls, and any red flags on a customer or transaction can still trigger deeper checks.

What it means for trade, payments, and investors

For Nigerian exporters, importers, fintechs, and companies receiving payments from Europe, the delisting can translate into three practical improvements:

First, lower friction and fewer delays. When a country is on the EU high-risk list, counterparties often demand extra documents and approvals before funds move. Removing that layer should reduce repeated “compliance queries” that slow down legitimate business transactions.

Second, lower transaction costs. Enhanced due diligence takes time and manpower, and banks price that burden into fees. With Nigeria off the list, Nigerian-linked transactions may become less expensive to process, especially for firms that transact frequently with European partners.

Third, a confidence signal to capital providers. Grey-listing and EU high-risk listing can shape how investors, correspondent banks, and international partners judge a market’s financial integrity. Nigeria’s exit from FATF monitoring in October 2025 was already a major reputational reset; the EU move strengthens that signal.

Government reaction: “a boost” for credibility

Nigeria’s finance authorities publicly welcomed the development, describing it as a win for the country’s financial standing and a positive signal for trade and investment flows.

A wider EU update: additions as well as removals

It is also worth noting that the same EU update that removed Nigeria and five African countries added Bolivia and the British Virgin Islands to the high-risk list. 

That detail underscores how the EU’s approach works: the list is dynamic, and jurisdictions move in or out based on assessed weaknesses and the pace of reforms.

What to watch next

Nigeria’s delisting is a milestone, but sustaining the benefits depends on staying aligned with global AML/CFT expectations. International counterparties will still pay attention to enforcement, not just policy statements, especially as Nigeria pushes for deeper foreign investment, more stable FX inflows, and stronger correspondent banking relationships.

For now, the immediate headline is clear: Nigeria and five other African countries are no longer on the EU’s high-risk list, and from January 29, 2026, EU enhanced due diligence requirements linked to that listing are expected to fall away, opening the door to faster, cheaper, and smoother financial transactions with Europe