Minister of State for Finance Mr Taiwo Oyedele has said that reform is not optional but the seed for progress, hence an inevitable choice for Africa to combat illicit financial flows(IFFs)
Oyedele who was speaking at the closing of 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 in Abuja affirmed that IFFs remain one of the biggest threats to Africa’s fiscal sovereignty.
“What is not working and what must change? The real test begins now, after this conference, and that is diligent execution. We must implement. Because without execution, tax reforms remain documents, policies remain intentions, and opportunities remain unrealized”.
The minister stated that it is not just a tax issue but a governance and development issue.
He further told participants that they 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.
“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 job not created,” he added.
“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.”
“The ongoing work at the United Nations and other platforms presents an opportunity we must not waste. And coordination is no longer optional. This is one very clear takeaway from this conference, because fragmentation is costing Africa.
“Whether in tax policy, whether in incentives, treaty negotiation, or enforcement, we must move toward greater coordination and harmonization.
The African Continental Free Trade Area presents a unique opportunity to align our fiscal systems with our trade ambitions, because integration without coordination will not deliver results.”
Mr Taiwo Oyedele went on to put across a call to action, hinging on the priorities: Strengthen domestic systems by investing in tax administration, digitizing processes, and building capacity, Deepen collaboration across countries, across institutions, across regions, and Stay committed to reform, even when it is difficult, because it will be difficult.
While calling for a united front in tackling the issues at hand, the minister concluded that “Africa’s future will not be defined by its challenges, but how decisively it responds to them. Fiscal strength is not just about revenue; it’s about sovereignty, stability, and sustainable development. If we get our tax systems right, if we close the leakages, if we mobilize 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.”
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