GENERAL BACKGROUND

Illicit financial flows (IFFs) derived from Transnational Organised Crime (TOC) and terrorist financing fuel insecurity, endanger economic stability and financial integrity as well as compromise the rule of law and governance of countries. West Africa’s countries and the wider region are affected by these challenges. Although countries of the region have made significant progress in building anti-money laundering (AML) and counter terrorist financing (CFT) frameworks, the sub-Sahara region lacks the required capability to effectively address IFFs and proceeds of TOC in the fight against these serious criminal and security threats.
The European Union (EU) successfully financed the OCWAR-M project which greatly contributed to building the AML / CFT capacity of professionals in targeted West African countries. Following the training of trainers, at least one national trainer was identified in each country. The EU is strongly committed to continue supporting West African countries in the fight against money laundering and terrorist financing. In line with this commitment, the EU has now financed a new phase of its initiative under a continental project named SecFin Africa (hereafter referred to as “the Project”) which aims to support Sub-Saharan African countries to prevent and combat illicit financial flows (IFFs) linked to transnational organized crime, by strengthening anti-money laundering and countering the financing of terrorism (AML/CFT) efforts, in line with international standards.
One objective of the project is to strengthen AML/CFT compliance and effectiveness by providing tailored, demand-driven technical assistance and training covering the entire process—from detection, assessment, investigation, asset recovery, prosecution and drafting of the judgement—through a multiagency approach, ensuring alignment with Financial Action Task Force (FATF) standards.
The Western Africa hub covers all GIABA member states (including Comoros and Sao-Tome-e-Principe) and Mauritania. Given Nigeria’s status as the region’s most significant economy, the country will receive particular attention from the SecFin Africa project. Africa’s most populous country and not only an economic powerhouse of the region but the entire continent, Nigeria is, according to the IMF part of the group of oil-exporting countries, the group of middle-income countries, and the group of countries affected by conflict (terrorism). If its growth rate remains stable in 2024, the IMF forecasts a decline in 2025 and 2026. Finally, its public debt has increased, reaching 52.9% in 2024 compared to 48.7% in 2023.
Given the deficiencies identified in its AML/CFT regime following its 2021 mutual evaluation, the FATF placed Nigeria on its grey list in February 2023. Since then, the country has been subject to the ICRG process and significant efforts are being made to ensure its removal from the list by October 2025. However, these efforts and progress will need to be monitored in view of the third-cycle mutual evaluation scheduled for the end of 2027. Technical assistance from the SecFin Africa project is part of the preparation schedule for this upcoming process.
A scoping mission was organized in Abuja, from April 27 to 30, 2025, to meet with all stakeholders involved in AML/CFT, assess their needs, and work with the NFIU to develop a two-year action plan, the main objective of which being the preparation for the third-round mutual evaluation.