Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has called for urgent fiscal reforms to curb illicit financial flows in Africa.

Edun made the call at the opening of the fifth session of the African Union Sub-Committee on Tax and Illicit Financial Flows of the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration (STC–FMAEPI), on Tuesday in Abuja.

He said that Africa stands at a defining moment where the urgency for reform is no longer in doubt, but requires bold and decisive action to unlock economic potential and strengthen Africa’s domestic resource mobilisation efforts.

According to him, Africa’s population of over 1.4 billion and vast resources can only translate into prosperity through effective mobilisation and management of domestic financial resources.

He said that global shifts in trade, finance and cooperation frameworks have reinforced the need for African countries to rely more on their institutions and internal capacities.

The minister said that sustainable development cannot depend solely on debt, aid or foreign investments but on domestic resource mobilisation as the foundation for long-term growth.

He said that Africa aims to finance up to 90 per cent of its development needs internally, in line with the African Union’s Agenda 2063 Development Blueprint.

Edun, however, lamented that illicit financial flows cost the continent about 88 billion dollars annually, depriving critical sectors like healthcare, education and infrastructure of needed funding.

He also identified key challenges facing Africa to include tax evasion, weak institutional capacity, limited economic diversification and continued reliance on external financing sources.

The minister said that Agenda 2063 provides a clear reform pathway through improved tax systems, enhanced governance, financial inclusion, capital market development and efforts to curb illicit financial flows.

He said that the leadership of President Bola Tinubu has implemented tax policies to simplify the system, expand the tax base and ease the burden on vulnerable citizens.

Edun said that measures such as fuel subsidy removal, exchange rate unification and improved transparency in oil revenue management have strengthened fiscal discipline and investor confidence.

According to him, Nigeria has also introduced a National Single Window system to enhance trade efficiency and reduce leakages associated with illicit financial practices.

He said that the reforms have led to improved non-oil revenue performance, stronger fiscal buffers and enhanced international cooperation in tracking illicit financial transactions.

Edun said that Africa’s fiscal reform priorities must include broadening the tax base, strengthening public financial management and promoting domestic savings and financial inclusion.

He called for robust capital market development and stronger cross-border collaboration to effectively combat illicit financial flows across the continent.

The minister said that sustainable reform requires strong institutions, digital infrastructure, regional cooperation and active citizen participation to ensure transparency and accountability in governance.

Edun said that successful reforms will enhance economic stability, reduce vulnerability to external shocks and create fiscal space for investment in critical sectors of the economy.

He urged African leaders to demonstrate courage, discipline and collective responsibility in implementing reforms that will drive inclusive growth and long-term development across the continent.

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