Edward Oseghe
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stressed that Africa cannot rely solely on foreign aid, debt, or external investments to drive its development agenda, urging a stronger focus on domestic resource mobilisation.
Edun made this known on Tuesday in Abuja during the fifth session of the African Union (AU) Sub-Committee on Tax and Illicit Financial Flows.
Highlighting the continent’s vast potential, he noted that Africa’s population of over 1.4 billion people presents significant economic opportunities. However, he warned that realising sustainable prosperity depends largely on how effectively countries generate and manage their internal resources.
He emphasised that domestic resource mobilisation must form the backbone of Africa’s development strategy, describing external funding sources as important but unpredictable and often influenced by factors beyond the continent’s control.
Referencing the AU’s Agenda 2063, Edun said Africa aims to fund up to 90 per cent of its development needs internally.
He added that achieving this ambitious target would require far-reaching systemic reforms rather than gradual adjustments.
Despite its promise, Edun pointed out that Africa continues to grapple with structural challenges, particularly illicit financial flows, which he said cost the continent an estimated $88 billion annually—resources that could otherwise support critical sectors such as infrastructure, healthcare, and education.
He also identified persistent issues including tax evasion, weak institutional capacity, limited economic diversification, and heavy reliance on external financing as major constraints to growth.
According to the minister, addressing these challenges is imperative. He called for comprehensive fiscal reforms aimed at expanding the tax base, improving compliance, and reducing revenue leakages, alongside strengthening public financial management systems to ensure transparency and accountability.
Edun further advocated for policies that encourage domestic savings, enhance financial inclusion, and develop strong capital markets capable of supporting investment and innovation.
He urged African countries to intensify efforts against illicit financial flows through stricter enforcement mechanisms and improved cross-border collaboration.
The minister also underscored the importance of investing in critical enablers of sustainable reform, including robust institutions, digital infrastructure, data systems, regional cooperation, and active citizen participation.
He concluded that effective implementation of these measures would boost economic stability, reduce vulnerability to external shocks, and create fiscal space for investments in key sectors, ultimately driving job creation and long-term growth across the continent.
