By Momodu Favour

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called for sweeping fiscal reforms across Africa to combat illicit financial flows, which continue to undermine the continent’s economic growth and development.

Edun made the appeal 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 described the current moment as pivotal for Africa, stressing that while the urgency for reform is widely acknowledged, the continent must now take bold and decisive steps to unlock its economic potential and strengthen domestic resource mobilisation.

“With a population exceeding 1.4 billion and vast natural resources, Africa’s prosperity hinges on how effectively it mobilises and manages its own financial resources,” Edun said.

He noted that ongoing global shifts in trade, finance and international cooperation frameworks have made it imperative for African nations to rely more on internal institutions and capacities rather than external support systems.

According to him, sustainable development on the continent cannot continue to depend heavily on debt, foreign aid or external investments, but must be anchored on strong domestic revenue generation mechanisms. He reiterated Africa’s ambition to finance up to 90 per cent of its development needs internally, in line with the Agenda 2063.

Despite this ambition, Edun expressed concern over the scale of illicit financial flows, which he said cost Africa an estimated 88 billion dollars annually. He warned that such losses deprive critical sectors including healthcare, education and infrastructure of much-needed funding.

The minister identified several structural challenges contributing to the problem, including widespread tax evasion, weak institutional frameworks, limited economic diversification and continued dependence on external financing.

He, however, pointed to ongoing reforms driven by President Bola Tinubu’s administration as part of efforts to strengthen Nigeria’s fiscal position and curb financial leakages.

These measures include tax policy reforms aimed at simplifying compliance, expanding the tax base and protecting vulnerable citizens. Edun also highlighted key economic steps such as the removal of fuel subsidies, exchange rate unification and increased transparency in oil revenue management.

In addition, he noted that the introduction of a National Single Window system has improved trade efficiency while reducing opportunities for illicit financial practices.

Edun said the reforms were already yielding results, including improved non-oil revenue performance, stronger fiscal buffers and enhanced collaboration with international partners to track and curb illicit financial transactions.

He urged African countries to adopt similar reform strategies, strengthen governance systems and enhance cooperation to effectively tackle illicit financial flows and secure sustainable economic growth across the continent.