- Says continent spends about $88bn annually to fight dirty money movement
BY COBHAM NSA – Minister of State for Finance Dr Taiwo Oyedele has warned that illegal financial flows constitute the greatest danger to Africa’s financial independence, insisting the continent will be better off by effectively addressing issues severely undermining its own economic destiny
Against this backdrop, he challenged African nations to combat regional illegal capital flight by strengthening domestic systems, specifically through investing in tax administration, digitizing processes, and capacity building.
Oyedele, who spoke in Abuja at the 5th session of Sub-committee on tax and Illicit financial flows of the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration (STC–FMAEPI), organised by the Nigeria Revenue Service (NRS), also harped on the need for cross-country and inter-institutional cooperation.
The former Chairman of the Tax Policy Reform Committee, said at the conference with the theme: “Building the Africa we want through tax and fiscal policy”, that tackling incidents of illicit financial flows is currently costing Africa about $88 billion annually, stressing that African nations must uphold reform efforts, recognizing that the process will inevitably be difficult.
According to him, “With regards to tackling illicit financial flows, this remains one of the biggest threats to Africa’s fiscal sovereignty. What we have seen clearly is that it is not just a tax issue; it is a governance and development issue. We must strengthen transparency systems, including beneficial ownership registers. We must enhance cross-border cooperation, use data more effectively, and ensure enforcement is credible and consistent”
He said cautioned that “every Naira, every shilling, every rand, every dollar lost to illicit financial flow is a school not built, it’s a hospital not equipped, and it’s a job not created”, adding: “Tax value where it is created. Africa must not be a passive participant in the global digital economy. We must assert our taxing rights. We must build capacity for digital tax administration and engage strategically in global negotiations”.
Also citing current initiatives at the United Nations (UN) and other forums as an opportunity that cannot be squandered or mismanaged, the Minister maintained that coordination and robust partnership are now absolute imperatives, noting: “This is one very clear takeaway from this conference, because fragmentation is costing Africa. Whether in tax policy, in incentives, treaty negotiation, or in enforcement, we must move toward greater coordination and harmonisation.
“The African Continental Free Trade Area (ACFTA) presents a unique opportunity to align our fiscal systems with our trade ambitions, because integration without coordination will not deliver results”.
For Oyedele, Africa’s trajectory will be defined by its decisive action, not its obstacles, stressing that true fiscal strength goes beyond mere revenue, to serve as the bedrock for lasting stability, sovereignty, and sustainable growth
“If we get our tax systems right, if we close the leakages, if we mobilise resources optimally, and then spend wisely, then we will not only build the Africa we want, we will secure the Africa that we truly deserve”, the Minister said
Besides praising the ATAF Joint Technical Committees’ work in developing the tools for policy development and tax administration efficiency, Oyedele also acknowledged the partnership with the African Union (AU) in rolling out these products to member countries for effective service delivery
