Nigeria’s Minister of Finance, Wale Edun, said illicit financial flows deprive Nigeria and African economies of up to $88 billion yearly.
He disclosed this on Tuesday at the 5th Subcommittee on Tax and IFFs in Abuja, organized by the African Union and the Nigerian Revenue Service.
According to him, IFFs negatively impact developing countries, noting that such funds would have been used to reduce poverty and minimize poverty.
He called NRS and African countries to strengthen domestic resource mobilization and clamp down on illicit financial flows draining the continent’s economies.
Edun warned that global economic challenges continue to weigh heavily on developing nations, stressing the need for self-reliance through improved tax systems and financial discipline.
“All these impact negatively on developing countries, and we must rely more on our own resources, on efficiency in our tax system, and on stopping the illicit and illegal flows of funds, which are depriving African economies of up to $88 billion annually,” he said.
“That is the package. Success in this area will mean that there are more resources available for economic development, for infrastructure, for health services, and for social protection.”
He further pointed to Nigeria’s ongoing macroeconomic reforms as a reference point for other African countries, noting that such measures, though challenging, are essential for long-term growth, poverty reduction, and economic independence.
Edun expressed optimism that sustained reforms and stronger cooperation would help African economies become more resilient, competitive, and better positioned to meet the needs of their populations.
In his remarks, the executive chairman of NRS, Zacch Adedeji, explained that effective tax systems are critical not only for revenue generation but also for strengthening governance and fostering trust between citizens and the state.
Adedeji said transparent, efficient, and fair revenue systems play a vital role in reinforcing public confidence in government institutions while providing resources needed for sustainable development.
He noted that strengthening revenue administration has become a central pillar of fiscal reforms across Africa.
“These reforms are part of Nigeria’s broader economic strategy to strengthen domestic resource mobilization, improve fiscal transparency, and create a more predictable environment for investment and growth,” he said.
Adedeji, however, warned that illicit financial flows remain a major threat to Africa’s economic progress, draining billions of dollars annually through illegal transfers, trade mispricing, tax evasion, and opaque corporate structures.
“The future prosperity of Africa will depend significantly on our ability to build strong fiscal institutions, protect our financial resources, and mobilize revenues from within our economies,” he said.
On her part, Executive Secretary of the African Tax Administration Forum, Mary Baine, has urged African countries to strengthen tax systems and curb illicit financial flows to drive sustainable development across the continent.
Baine said Africa’s development aspirations under Agenda 2063 can only be achieved through “robust, fair, and efficient tax and fiscal systems.”
“Our theme carries a clear message: Africa’s aspirations will only be realized if we can finance them ourselves.
“The early indications are that African countries will have to rely more on revenue collection and closing the loopholes, such as illicit financial flows,” she stated.
