By Majeed Salaam
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has called for a decisive shift in how African countries finance their development, warning that the continent cannot continue to depend on debt, aid and external investment if it hopes to achieve the ambitions of Agenda 2063.
Speaking recently at a high-level meeting of African finance and tax officials, Edun outlined a practical roadmap for strengthening economic independence, centred on expanding tax systems, blocking revenue leakages and improving public financial management to ensure transparency and accountability.
His message reflects a growing consensus among policymakers that Africa must look inward for sustainable growth, particularly as global economic dynamics shift and traditional sources of development finance become less reliable.
Edun argued that African countries need to significantly broaden their tax base and strengthen enforcement mechanisms to reduce losses from tax evasion and inefficiencies. He also stressed the importance of boosting domestic savings and deepening financial inclusion, noting that mobilising local capital is essential for long-term investment.
Beyond taxation, he pointed to the need for stronger capital markets that can support innovation and enterprise across the continent. According to him, building resilient financial systems will enable African economies to better withstand external shocks and finance critical sectors such as infrastructure, healthcare and education.
A major concern raised by the minister was the persistent problem of illicit financial flows, which he said have cost Africa an estimated $88 billion annually. These losses, often linked to illegal transfers, trade mispricing and tax avoidance schemes, continue to deprive governments of resources that could transform economies and improve living standards.
“These changes in the global system reinforce a clear lesson,” Edun said in substance, “Africa must increasingly rely on its own institutions and resources.”
Also speaking at the session, Dr. Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS), highlighted the mounting pressure on governments across the continent to fund development priorities amid widening financing gaps.
He noted that African countries are simultaneously expected to invest in infrastructure, strengthen social safety nets, drive industrialisation and respond to climate challenges, all while losing significant revenue to illicit flows and weak tax compliance.
Adedeji, however, framed the situation as an opportunity for reform. He emphasised that effective tax systems are not only about revenue generation but also about strengthening governance and building trust between citizens and the state.
According to him, when tax systems are transparent, efficient and fair, they reinforce confidence in public institutions and create a more stable environment for economic growth.
He pointed to ongoing reforms across Africa, where revenue authorities are modernising operations, deploying digital tools and improving compliance frameworks to enhance efficiency. In Nigeria, he said, efforts are underway to transform tax administration into a more technology-driven system capable of supporting national development goals.
Despite these reforms, both speakers agreed that illicit financial flows remain a major obstacle to progress. The scale of these outflows, they warned, represents lost investments in critical sectors and a direct setback to Africa’s development ambitions.
