FATF Grey List is a ‘Major Stumbling Block’ for Nigeria’s Cross-Border Payments, Says Busha Co-founder

FATF Grey List is a ‘Major Stumbling Block’ for Nigeria’s Cross-Border Payments, Says Busha Co-founder.

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September 3, 2025 – Nigeria’s continued presence on the Financial Action Task Force (FATF) grey list is a “major stumbling block” that significantly hampers the country’s ability to compete in the global financial system, particularly in the realm of cross-border payments.

This is the view of Moyo Sodipo, the Co-founder and Chief Operating Officer of Nigerian crypto exchange Busha. In a wide-ranging interview with Nairametrics, Sodipo provided a detailed analysis of the challenges and opportunities facing Nigeria’s crypto ecosystem one year after the Securities and Exchange Commission (SEC) began licensing digital asset exchanges.

While celebrating the transformative impact of local regulation, he identified the FATF grey-listing as the most critical external hurdle that needs to be overcome. Nigeria was placed on the list of “Jurisdictions under Increased Monitoring” in February 2023 due to identified shortcomings in combating money laundering and terrorism financing.

The FATF Grey List: Nigeria’s Biggest Global Hurdle

According to Sodipo, the grey list designation subjects all transactions originating from or terminating in Nigeria to a higher degree of international scrutiny, creating friction and discouraging global partners.

“I think one thing that’s sort of a stumbling block for us in Nigeria is that we’ve been on the FATF grey list since February 2023. And that’s one thing that has been a very, very big stumbling block,” he explained.

“Us being on that list today means that when we’re trying to compete or we’re trying to be on the same stage as everybody else globally, we always keep encountering a very big stumbling block.” He stressed that for Nigeria to compete on an equal footing, all regulators and private sector stakeholders must work hand-in-hand to meet the FATF’s requirements and get the country removed from the list.

A New Dawn: How SEC Regulation Transformed the Crypto Landscape

While the FATF issue presents an external challenge, Sodipo painted a highly positive picture of the progress made internally since the SEC began its regulatory oversight. He described the past year as one of “learning and collaboration” that has moved the industry out of the shadows.

Key benefits of the SEC’s regulation include:

Restored Banking Access: Licensed exchanges can now operate formal bank accounts, ending the era of relying on “P2P or different innovative models to walk around the roadblock” created by the 2021 CBN restrictions.

Boosted User Confidence: Customers now have the backing of a formal regulator. “It has boosted user confidence where if there’s any issue… they can easily send a message to the SEC to verify our legitimacy,” Sodipo said.

Attracted Corporate Clients: The regulatory clarity has opened doors to institutional players. “Certain large corporates… that were interested in this industry would not have touched us with a long stick. But as soon as this happened, we started getting those inbounds.”

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Enabled Collaboration: The relationship with the SEC has been collaborative, not hostile, allowing for constructive dialogue on global standards and local needs.

Beyond Speculation: The Future is Daily Crypto Utility

Sodipo emphasized that the next phase of growth for crypto in Nigeria is moving beyond its perception as a speculative, “get rich quick” asset class. The focus, he said, is on real-world application.

“For us, it’s about educating the users to let them know that you can apply crypto to your daily life,” he stated. He envisions a future where Nigerians can use their digital assets to pay for everyday items like airtime or groceries as seamlessly as they use a bank transfer.

He also highlighted the immense potential of stablecoins to revolutionize cross-border payments and remittances, making transactions “faster” and “more borderless.” He called for collaboration, not competition, between crypto platforms and traditional banks to achieve this.

The Path Forward: Education and Regulatory Harmony

Looking ahead, Sodipo identified two critical needs for the ecosystem: education and regulatory alignment. He praised the joint initiative between Busha, the SEC, and Cambridge University for an executive course aimed at educating “decision-makers” and “regulators” on the intricacies of digital assets.

Ultimately, he argued that sustainable growth depends on all Nigerian regulators—CBN, SEC, NFIU, EFCC—speaking with one unified voice.

“The SEC cannot be walking to the right side, to the positive direction, while another regulator or stakeholder in the same space is doing something that will be counterintuitive for the industry,” he warned. “If everyone speaks with one united voice, issues like the FATF grey list would easily be sorted out.”