Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on African nations to reduce their dependence on external borrowing and intensify efforts to combat illicit financial flows draining the continent’s resources.

 

Speaking at the African Union Sub-Committee on Tax and Illicit Financial Flows in Abuja, Edun warned that Africa cannot rely solely on foreign funding sources such as debt, aid, and external investments to achieve sustainable development.

 

“Africa cannot sustainably finance its development through debt, aid, or external investment alone,” he said, noting that such funding streams are often unstable and heavily influenced by global economic conditions.

 

The minister highlighted the scale of the challenge, revealing that illicit financial flows cost Africa an estimated $88 billion annually—funds that could otherwise be invested in critical sectors such as infrastructure, healthcare, and education.

 

He urged countries across the continent to strengthen domestic resource mobilization in line with the African Union’s Agenda 2063 framework, which envisions up to 90 percent of development financing coming from local sources.

 

Edun also pointed to systemic challenges hindering economic growth, including tax evasion, weak institutions, and limited diversification of African economies. Addressing these issues, he said, is crucial for long-term stability and prosperity.

 

Highlighting Nigeria’s efforts, Edun outlined a series of reforms introduced by the government to boost revenue and reduce reliance on borrowing. These include tax policy changes, the removal of fuel subsidies, exchange rate unification, and new measures aimed at improving transparency and accountability in oil revenue.

 

He further noted the implementation of the National Single Window initiative, designed to enhance trade efficiency and reduce revenue leakages across borders.

 

Edun concluded by calling for stronger collaboration among African countries to tackle illicit financial flows, stressing that only coordinated and decisive action can secure sustainable economic development for the continent.