Nigeria Calls for Urgent Fiscal Reforms to Combat Illicit Financial Flows in Africa

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has urged African nations to implement urgent fiscal reforms to curb illicit financial flows and strengthen domestic resource mobilisation.

Edun made the call on Tuesday in Abuja 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. He emphasized that Africa, with over 1.4 billion people and abundant natural resources, can only achieve sustainable prosperity through effective mobilisation and management of domestic financial resources.

Highlighting the scale of the challenge, Edun said illicit financial flows deprive the continent of about 88 billion dollars annually, affecting critical sectors like healthcare, education, and infrastructure. He added that reliance solely on debt, aid, or foreign investment is unsustainable, and African countries must increasingly rely on their own institutions and capacities.

The minister outlined several reform priorities aligned with the African Union’s Agenda 2063, including broadening the tax base, improving public financial management, promoting domestic savings, enhancing financial inclusion, developing capital markets, and fostering cross-border collaboration to track and prevent illicit financial activities.

Edun noted that Nigeria has already implemented reforms to strengthen fiscal discipline, including the removal of fuel subsis, exce rate unification, improved transparency in oil revenue management, and the introduction of a National Single Window system to enhance trade efficiency and reduce revenue leakages. He said these reforms had improved non oil revenue performance and investor confidence, providing a model for other African countries.

He concluded by urging African leaders to exercise courage, discipline, and collective responsibility in implementing fiscal reforms, emphasizing that successful efforts would create fiscal space for investment in critical sectors, enhance economic ility, and drive inclusive growth across the continent.