Africa faces a pressing need to address its staggering $88 billion loss to illegal money transfers, according to Edun.

Nigeria's Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has emphasized the need for urgent action to combat the $88 billion annual Illicit Financial Flows (IFFs) affecting the African continent, stressing that these outflows could be invested in vital social and economic sectors.

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Edun made this statement while speaking at the opening of the 5th Sub-Committee on Tax and IFFs of the African Union's Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration in Abuja, where he noted that IFFs alone are estimated to cost Africa over $88 billion annually.

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This situation is particularly dire, according to Edun, as Africa pays out more in debt servicing than it receives in Overseas Development Assistance (ODA) and Foreign Direct Investment (FDI) combined, highlighting the need for the continent to leverage its 1.4 billion people and abundant natural resources for the benefit of its citizens.

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Edun emphasized that the continent's development must be financed domestically, rather than relying on debt or aid, and stated that there is a continental ambition under Agenda 2063 to mobilize up to 90% of Africa's development financing needs from domestic resources.

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This ambition includes strengthening tax systems, maximizing returns from natural resources, enhancing domestic savings, developing capital markets, combating IFFs, and improving governance through digitization and technology, Edun explained.

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He highlighted Nigeria's National Single Window project, launched the previous week, as a key reform aimed at trade facilitation, reducing costs, and increasing government revenue, noting that such initiatives improve the investment climate.

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In his welcome address, the Executive Chairman of the Nigerian Revenue Service (NRS), Dr. Zacch Adedeji, described IFFs as "one of the most pressing threats to Africa's economic progress", citing the billions of dollars lost annually through illegal financial transfers, trade mispricing, tax evasion, and opaque corporate structures.

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Adedeji urged coordinated action at national and continental levels to address IFFs, which exploit weaknesses in international regulatory systems, and stressed that continental cooperation through platforms such as the Sub-Committee is indispensable.

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He concluded by emphasizing that the future prosperity of Africa depends on building strong fiscal institutions, protecting financial resources, and mobilizing revenues domestically, and expressed his belief that, through collaboration and shared commitment, the necessary reforms can be advanced to safeguard Africa's resources and build resilient economies.