Nigeria’s Minister of Finance, Wale Edun, has called on African nations — including Nigeria — to reduce reliance on foreign borrowing and focus on building stronger domestic economies.
Speaking at the African Union Sub-Committee on Tax and Illicit Financial Flows in Abuja, Edun stressed that Africa cannot depend on debt, aid, or foreign investments alone to fund its development. According to him, these sources are often unstable and influenced by global economic conditions.
Africa Losing $88 Billion Yearly
A major concern raised by Edun is the scale of illicit financial flows across the continent. He revealed that Africa loses an estimated $88 billion annually through illegal financial activities.
These losses, he noted, could have been invested in:
- Infrastructure development
- Healthcare systems
- Education and human capital
He emphasized that tackling these leakages is critical if Africa hopes to achieve long-term economic stability and meet the goals of the African Union’s Agenda 2063, which aims for up to 90% local funding of development.
Nigeria’s Reform Efforts
Also, Edun highlighted several steps taken by Nigeria to reduce dependence on borrowing and improve revenue generation. These include:
- Tax reforms to boost government income
- Removal of fuel subsidies
- Exchange rate unification
- Improved transparency in oil revenue
He also pointed to the introduction of the National Single Window, a system designed to improve trade efficiency and reduce financial leakages.
Call for Collective African Action
However, Edun concluded by calling for stronger collaboration among African countries to combat illicit financial flows. He stressed that decisive and unified action is needed to build sustainable economies across the continent.
For Nigeria and other African nations, the message is clear: reduce dependence on foreign funding, strengthen local systems, and stop financial leakages to secure the future.
