Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has urged African countries, including Nigeria, to reduce dependence on external borrowing and strengthen efforts to curb illicit financial flows.
Speaking at the African Union Sub-Committee on Tax and Illicit Financial Flows in Abuja, he stressed that sustainable development cannot be achieved through foreign funding alone, noting that “Africa cannot sustainably finance its development through debt, aid, or external investment alone.” He added that such funding sources are often unstable and influenced by external global conditions.
Edun highlighted that illicit financial flows cost Africa about $88 billion annually resources that could be used for infrastructure, healthcare, and education. He said countries must rely more on domestic resources in line with the African Union’s Agenda 2063, which targets up to 90% local financing of development.
He also pointed to challenges such as tax evasion, weak institutions, and limited economic diversification, stressing that addressing them is essential for growth. On Nigeria’s side, he said the government has introduced reforms to boost revenue, improve transparency, and reduce reliance on borrowing, including tax reforms, fuel subsidy removal, exchange rate unification, and measures to improve oil revenue accountability.
Edun further noted the introduction of the National Single Window to improve trade efficiency and reduce leakages. He called for stronger collaboration among African countries to combat illicit financial flows, concluding that decisive and collective action is needed to achieve sustainable economic development.
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