ABUJA — Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Tuesday warned that Africa loses about $88 billion annually to illicit financial flows, calling for urgent and sweeping fiscal reforms across the continent.
Edun spoke at the 5th Session of the Sub-Committee on Tax and Illicit Financial Flows of the African Union, held at the Transcorp Hilton Abuja, where policymakers and experts gathered to address Africa’s fiscal challenges.
He described the massive outflow as a major drain on resources needed for infrastructure, healthcare, and economic growth, stressing that Africa must reduce reliance on external financing sources such as debt and aid.
“Our ambition is to finance up to 90 per cent of Africa’s development needs from domestic resources,” Edun said, referencing the continent’s long-term development blueprint.
The minister identified tax evasion, weak institutions, and limited economic diversification as key drivers of the losses, insisting that curbing illicit financial flows is critical to unlocking Africa’s fiscal potential.
He highlighted Nigeria’s ongoing reforms under President Bola Ahmed Tinubu, including tax system overhaul, fuel subsidy removal, and exchange rate unification, noting that they are already improving revenue and boosting investor confidence.
Edun added that initiatives such as the National Single Window system and tighter controls on oil and gas revenue remittances are helping to reduce financial leakages and enhance transparency.
Also speaking, Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, said illicit financial flows continue to undermine Africa’s development, describing them as “lost hospitals, lost schools, and lost opportunities.”
He called for stronger tax systems, improved compliance, and greater use of digital tools to boost transparency and revenue collection.
Similarly, Executive Secretary of the African Tax Administration Forum, Mary Baine, urged African countries to close revenue leakages and strengthen fiscal frameworks to achieve sustainable development goals.
She stressed that Africa’s aspirations under Agenda 2063 depend on the continent’s ability to finance its own development through efficient and fair tax systems.
Participants at the meeting are expected to develop policy strategies and strengthen regional cooperation to curb illicit financial flows and enhance fiscal resilience across African economies.
