Nigeria's Finance Minister Critiques Foreign Loan Dependence

On Tuesday, Wale Edun, Nigeria's Minister of Finance, addressed the 5th session of the African Union's sub-committee on tax and illicit financial flow in Abuja, warning that Africa, particularly Nigeria, cannot continue to rely on external borrowing, which leads to significant resource loss through illicit financial flows. He highlighted that illicit financial flows cost Africa nearly $88 billion annually, resources that could otherwise be invested in infrastructure, education, and healthcare.

Edun stressed the urgent need to curb these practices and improve domestic revenue mobilization, aligning with the African Union's Agenda 2063, which aims for countries to mobilize 90% of development financing from domestic resources. He noted that the Nigerian government has taken steps to reduce reliance on foreign borrowing and improve fiscal transparency, including comprehensive tax reforms set to take effect in January 2026.

Edun also pointed out the importance of cross-border cooperation to tackle illicit financial flows and enhance the fiscal system across Africa.