Nigeria has been removed from the European Union’s list of high-risk jurisdictions, a regulatory classification that subjects transactions involving the country to heightened scrutiny within the bloc.

The European Commission confirmed on Wednesday that Nigeria, alongside South Africa, Burkina Faso, Mali, Mozambique and Tanzania, no longer posed what it described as “strategic deficiencies” in anti-money laundering and counter-terrorism financing controls, following reforms aligned with global standards.

According to the commission, the affected countries implemented measures consistent with the Financial Action Task Force framework, leading to their removal from the list used by EU financial institutions to determine enhanced due diligence requirements.

Nigeria’s inclusion on the high-risk list had meant that banks, businesses and investors dealing with European counterparts faced stricter documentation demands, longer processing times and additional compliance costs. Its removal is expected to reduce regulatory friction in cross-border payments, trade settlements and investment-related transactions involving the EU.

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Reacting to the decision, the Minister of State for Finance, Dr Doris Uzoka-Anite, said the development could support investor confidence and trade flows. In a post on X, she described Nigeria’s delisting as a positive signal to international markets.

However, the decision comes against the backdrop of sustained economic pressures at home, including high inflation, currency volatility and rising business costs. Analysts note that while the delisting eases compliance burdens for firms with European exposure, it does not directly address domestic challenges weighing on investment and consumer activity.

For many Nigerian businesses, especially those focused on the local market, broader constraints such as weak purchasing power, energy costs and access to credit continue to shape operating conditions more than external regulatory classifications.

Nigeria’s removal from the EU list reflects progress in financial oversight and regulatory coordination, but maintaining that status will depend on continued enforcement and monitoring. Any broader economic benefit is likely to depend on whether improved compliance translates into increased capital flows and sustained investment over time.

Meiza Nigeria