ABUJA, Nigeria (VOICE OF NAIJA)-The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has advocated urgent fiscal reforms to tackle illicit financial flows across Africa.
Edun made this appeal at the opening of the fifth session of the African Union Sub-Committee on Tax and Illicit Financial Flows under the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration, held on Tuesday in Abuja.
He noted that Africa is at a critical juncture where the need for reform is clear, stressing that bold and decisive actions are required to unlock the continent’s economic potential and strengthen domestic resource mobilisation.
According to him, Africa’s population of over 1.4 billion and its abundant resources can only translate into prosperity through effective mobilisation and proper management of internal financial resources.
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He explained that evolving global dynamics in trade, finance and cooperation frameworks have made it imperative for African nations to depend more on their own institutions and internal capabilities.
The minister emphasised that sustainable development should not rely solely on debt, foreign aid or investments, but must be anchored on domestic resource mobilisation as the basis for long-term growth.
He added that Africa targets financing up to 90 per cent of its development needs internally, in line with the African Union’s Agenda 2063 Development Blueprint.
Edun, however, decried that illicit financial flows drain about 88 billion dollars from the continent annually, depriving vital sectors such as healthcare, education and infrastructure of essential funding.
He identified major challenges confronting Africa to include tax evasion, weak institutional capacity, limited economic diversification and persistent dependence on external financing.
The minister noted that Agenda 2063 outlines a clear reform path through stronger tax systems, improved governance, enhanced financial inclusion, capital market growth and measures to curb illicit financial flows.
He stated that under the leadership of President Bola Tinubu, tax policies have been introduced to simplify the system, broaden the tax base and reduce the burden on vulnerable groups.
Edun added that initiatives such as fuel subsidy removal, exchange rate unification and increased transparency in oil revenue management have improved fiscal discipline and boosted investor confidence.
He further disclosed that Nigeria has implemented a National Single Window system to improve trade efficiency and minimise leakages linked to illicit financial activities.
According to him, these reforms have resulted in better non-oil revenue performance, stronger fiscal buffers and enhanced international collaboration in tracking illicit financial transactions.
Edun stressed that Africa’s fiscal reform agenda should focus on widening the tax base, strengthening public financial management and encouraging domestic savings and financial inclusion.
He also called for deeper capital market development and stronger cross-border cooperation to effectively address illicit financial flows.
The minister maintained that sustainable reforms require strong institutions, digital infrastructure, regional collaboration and active citizen engagement to ensure transparency and accountability.
He concluded that successful reforms would improve economic stability, reduce exposure to external shocks and create fiscal space for investment in critical sectors.
Edun urged African leaders to show courage, discipline and collective commitment in implementing reforms that will drive inclusive growth and long-term development across the continent.
NAN