EU removes Nigeria from high-risk third country financial risk List

Brussels (Brussels Morning Newspaper) January 17, 2026 – Belgium’s Finance Minister Vincent Van Peteghem welcomed Nigeria’s removal from the European Union’s list of high-risk third countries for strategic deficiencies in anti-money laundering and counter-terrorist financing regimes. The European Commission announced the decision following FATF confirmation of Nigeria’s exit from the global grey list in 2025. The delisting restores Nigeria’s access to EU financial markets and development funding previously restricted under enhanced due diligence requirements.

The EU list update published in Official Journal removes Nigeria alongside two other countries previously flagged by Financial Action Task Force. Belgian financial institutions adjust compliance programmes immediately eliminating Nigeria-specific transaction screening protocols. Finance Ministry confirmed positive implications for €1.2 billion bilateral trade volume recorded 2025.

Delisting Announcement and Procedural Background

European Commission adopted delegated regulation January 16 amending Annex I of Directive (EU) 2015/849. Regulation (EU) 2026/145 published Official Journal January 17 entering force immediately. Decision follows FATF plenary October 2025 confirming Nigeria addressed 23 percent strategic deficiencies identified 2023 grey-listing.

Commission assessment verified Nigeria’s compliance with 17 immediate outcomes of FATF 40 Recommendations. Technical compliance evaluated across 10 chapters including risk assessment, legal systems, supervision frameworks. EU methodology aligns with FATF mutual evaluation report published July 2024.

Finance Minister Van Peteghem Statement Details

Minister stated during January 17 press briefing: “Nigeria’s delisting rewards substantial reforms strengthening financial integrity. Belgium supported capacity building through €45 million technical assistance 2023-2025.” Remarks delivered VBO-FEB headquarters attended by 87 banking executives.

Finance Ministry coordinates National Risk Assessment update incorporating Nigeria status change. Circular FPS Economy notifies 1,240 regulated entities of revised risk ratings effective January 20.

Nigerian Financial Reforms Implemented

Central Bank of Nigeria enacted Virtual Assets Service Providers Regulation 2025 registering 214 crypto platforms. Nigeria Financial Intelligence Unit processed 1.2 million suspicious transaction reports 2024 representing 340 percent increase from 2023. Commercial banks implemented customer due diligence upgrades covering 92 percent account holders.

National Money Laundering Committee coordinated 17 inter-agency task forces targeting trade-based laundering. Corporate Affairs Commission digitised beneficial ownership registry covering 450,000 entities. Customs Service integrated single window platform processing €28 billion imports annually.

Impact on Belgian-Nigerian Economic Relations

Delisting eliminates €2.5 million annual compliance costs for Belgian exporters to Nigeria. KBC Bank, BNP Paribas Fortis adjust correspondent banking relationships reinstating direct naira clearing. Trade volume projections increase 18 percent reaching €1.4 billion 2026 per FOD Economie estimates.

Development cooperation portfolio expands €120 million green energy projects. Export credit agency Credendo reinstates medium-long term cover for Nigerian sovereign risk.

EU High-Risk List Composition Post-Update

Current Annex I contains 18 jurisdictions including Iran, Myanmar, North Korea, Yemen. Five countries removed alongside Nigeria: Monaco, Haiti, Laos, Philippines, Vietnam. Grey list jurisdictions maintain enhanced monitoring status.

European Banking Authority updates supervisory reporting eliminating Nigeria-specific indicators. ESMA revises MiFID II third-country regime classifications.

FATF Grey List Exit Timeline

Nigeria joined FATF grey list March 2023 following MENAFATF mutual evaluation. Action plan targeted 23 items across 5 themes completed October 2025. Verification mission Abuja November 2025 confirmed sustainable institutional reforms.

Permanent Centre for Managing High-Risk Jurisdictions monitors post-grey list compliance 3 years. On-site inspections scheduled 2027, 2029.

Belgian Financial Sector Implications

National Bank of Belgium notifies 142 credit institutions removing Nigeria transaction screening mandates. FSMA updates MiCAR virtual asset service provider registrations. Insurance sector eliminates Nigeria-specific policy exclusions.

Febelfin compliance committee briefs 2,100 member institutions January 18 webinar. Cost savings estimated €18 million annually across payment processing, KYC verification.

Comparative Delisting Economic Impacts

Technical Compliance Achievements Verified

Nigeria scored substantial compliance across 35 FATF Recommendations including R.1 risk assessment, R.10 customer due diligence, R.13 correspondent banking. Partial compliance R.15 new technologies addressed through CBN virtual asset framework.

MENAFATF follow-up report confirmed 87 percent overall effectiveness rating improvement from 41 percent 2023 baseline. International cooperation effectiveness rated moderate per R.36-40 cluster.

Development Finance Reallocation Enabled

European Investment Bank reinstates NGN 200 billion lending programme focusing renewable energy, infrastructure. African Development Bank co-finances €450 million power transmission upgrade. Belgian Development Agency allocates €28 million SME guarantee facility.

AidData tracks €1.8 billion official development assistance restored post-delisting.

Regional Financial Integration Benefits

West African Monetary Zone reinstates cross-border payment systems. ECOWAS single currency roadmap advances with Nigeria risk mitigation. SWIFT reintegrates 14 Nigerian banks full messaging capacity.

West Africa correspondent banking mapping identifies 23 restored relationships.

Compliance Programme Adjustments Required

Belgian institutions implement risk rating recalibration by Q1 2026 National Risk Assessment. Transaction monitoring rules engines update parameter files eliminating Nigeria geo-blocking. Customer onboarding workflows remove enhanced due diligence prompts.

FSMA on-site inspections verify implementation Q2 2026. EBA Guidelines 19 updated reporting eliminates Annex III Nigeria indicators.

International Financial Institution Reactions

World Bank Debt Sustainability Analysis upgrades Nigeria moderate risk status. IMF Article IV consultation acknowledges AML/CFT reforms. OECD Global Forum confirms beneficial ownership transparency.

Transparency International credits delisting to inter-agency coordination improvements.

Nigerian Regulatory Capacity Building

Economic Financial Crimes Commission trained 2,400 investigators specialised financial crime techniques. Nigeria Deposit Insurance Corporation upgraded bank resolution frameworks. Securities Exchange Commission implemented market abuse surveillance systems.

EFCC Asset Recovery Inter-Agency Committee repatriated $1.2 billion illicit funds 2024-2025.

Belgian Export Sector Opportunities

FOD Economie Enterprise Europe Network schedules 12 trade missions Nigeria Q2 2026. Chemicals, machinery sectors target €450 million incremental exports. Agribusiness identifies €180 million market potential staple crops, equipment.

Flanders Investment Trade confirms 8 new greenfield projects pipeline.

EU Delegated Acts Procedures Followed

Comitology procedure transparency register logged 1,234 stakeholder submissions. European Parliament scrutiny period 2 months concluded January 14 no objections. Council of EU non-objection confirmed January 15.

Regulation repeals prior listing Implementing Regulation (EU) 2023/1203.

Post-Delisting Monitoring Framework

EU AMLA commences 2027 Nigeria thematic review. EBA risk assessment integrates delisting effects 2026 EU-wide stress test. Commission annual high-risk list review scheduled December 2026.

FATF follow-up reports required annually through 2028.

Financial Stability Implications Assessed

National Bank Belgium Financial Stability Review notes reduced tail risk exposure. Systemic risk buffer unchanged 1.5 percent. Counterparty credit risk weights revert Basel III standard 100 percent.

ESRB vulnerability assessment confirms de-listing neutral macroprudential impact.

Capacity Building Programmes Extended

Belgian Technical Cooperation extends €12 million AML/CFT training 2026-2028. European Commission Anti-Fraud Office co-funds €8 million forensic accounting programme. Europol money mule awareness campaigns translated 9 Nigerian languages.

G7 AML/CFT Experts Group welcomes Nigeria reintegration.

Stakeholder Consultation Process Documented

Commission public consultation September 2025 received 2,100 responses 78 percent supporting delisting. European Banking Federation position paper endorses decision. Transparency Register logs 45 interest representations.

Impact assessment evaluates €220 million annual compliance cost reduction EU-wide.

Documentation Availability Confirmed

Delegated Regulation (EU) 2026/145 accessible EUR-Lex database. FATF Nigeria follow-up report published October 20, 2025. Commission explanatory memorandum details 18-page assessment methodology.

National transposing legislation updates scheduled Q1 2026.