Urgent Action Needed on Africa's $88bn Illicit Financial Flows

Olawal Edun, Nigeria's Minister of Finance and Coordinating Minister of the Economy, addressed the urgent need to tackle Africa's $88 billion annual illicit financial flows (IFF) during his speech at the 5th sub-committee on tax of the African Union's Special Technical Committee on Finance and Monetary Affairs in Abuja. Edun stressed that these outflows represent a significant loss of resources that could otherwise be invested in vital social and economic sectors.

He noted that Africa is burdened by debt servicing and relies heavily on overseas development assistance and foreign direct investment. Edun emphasized the importance of domestic resource mobilization, including tax reforms and maximizing returns from natural resources, to achieve the continent's Agenda 2063 goals.

Dr. Zacch Adedeji, Executive Chairman of the Nigerian Revenue Service, echoed Edun's concerns, highlighting the billions lost annually due to illicit financial transfers and the need for coordinated action at both national and continental levels to combat these issues.