Illicit financial flows draining Africa’s resources, says Oyedele
Minister of State for Finance, Taiwo Oyedele, has warned that illicit financial flows (IFF) are draining Africa’s resources and slowing development, saying every amount lost denies citizens access to essential
- From Nduka Chiejina, Abuja
Minister of State for Finance, Taiwo Oyedele, has warned that illicit financial flows (IFF) are draining Africa’s resources and slowing development, saying every amount lost denies citizens access to essential services.
“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 a job not created,” he said.
Oyedele spoke at the closing ceremony of the 5th African Union Special Technical Committee and Sub-Committee on Tax and Illicit Financial Flows Conference held in Abuja, where he described illicit financial flows as one of the biggest threats to Africa’s fiscal independence.
According to him, the challenge goes beyond taxation and affects governance and economic development across the continent. “What we have seen clearly is that it is not just a tax issue; it is a governance and development issue,” he said.
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He called on African governments and institutions to take stronger action to address the problem by improving transparency and strengthening enforcement systems.
“We 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,” Oyedele said.
On taxation, the minister said African countries must ensure that value created within their economies is properly taxed, especially as digital activities continue to grow. “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,” he said.
Oyedele added that ongoing discussions at global platforms, including the United Nations, provide an opportunity for African countries to push for fairer tax systems, but warned that lack of coordination among countries is weakening the continent’s position.
“And coordination is no longer optional. This is one very clear takeaway from this conference, because fragmentation is costing Africa. Whether in tax policy, incentives, treaty negotiation, or enforcement, we must move toward greater coordination and harmonisation,” he said.
He also pointed to the opportunities presented by the African Continental Free Trade Area, noting that African countries must align their tax systems with their trade goals.
“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,” he said.
Oyedele urged countries across the continent to focus on strengthening their domestic systems by investing in tax administration, digitising processes, and building capacity, while also deepening collaboration across borders and remaining committed to reforms. “Reform is not optional. It is the seed for progress. If you don’t plant it, it will be hard for progress to come,” he said.
He also stressed the need for unity among African countries, noting that collective action is necessary to tackle shared challenges. “One thing (that) cuts across all through these sessions over the past three days is the need for Africa to be united. We are stronger together, but we must also remember that we are only as strong as our weakest link,” he said.
Quoting a popular African proverb, he added, “If you wish to go fast, you go alone, but if you wish to go far, you must go together.” The minister said Africa must aim to achieve both quick progress and long-term development, adding that the continent’s future depends on how decisively it responds to its current challenges.
“Africa needs to go far and fast. Africa’s future will not be defined by its challenges, but how decisively it responds to them,” he said.
He concluded that strong tax systems are key to building stable economies across Africa.
“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 mobilise 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,” Oyedele said.
