Africa needs to make smart financial decisions, rather than just focusing on increasing income — Oyedele

The Minister of State for Finance, Taiwo Oyedele, has emphasized the importance of African countries adopting a balanced approach to economic development, focusing on both prudent spending and revenue generation to achieve sustainable growth.

n

This call to action was made by Oyedele at the conclusion of the African Union's Specialized Technical Committee meeting on Finance, Tax and Illicit Financial Flows, held in Abuja.

n

Oyedele underscored that fiscal strength encompasses more than just revenue mobilisation, highlighting the need for effective resource management to ensure stability and long-term growth.

n

He noted that fiscal strength is inextricably linked to sovereignty, stability, and sustainable development, stating that optimal resource mobilisation and wise spending are essential for building and securing a prosperous Africa.

n

Illicit financial flows were identified by the minister as a significant threat to Africa's economic progress, likening them to a drain on resources that could be utilised for critical infrastructure and social services.

n

Oyedele illustrated the impact of illicit financial flows, explaining that every lost naira, shilling, rand, or dollar translates to a school not built, a hospital not equipped, and a job not created.

n

To address this challenge, Oyedele advocated for the implementation of stronger transparency systems, including beneficial ownership registers, enhanced cross-border cooperation, and improved data utilisation.

n

He also urged African countries to assert their rights in the global digital economy by strengthening tax systems for digital transactions and actively participating in international negotiations.

n

Oyedele stressed that Africa must not adopt a passive role in the global digital economy, instead building capacity for digital tax administration and coordinating policies more effectively.

n

The minister highlighted the need for greater collaboration among African nations, warning that fragmented policies undermine the continent's economic potential.

n

Oyedele drew attention to the role of the African Continental Free Trade Area in aligning fiscal systems with trade objectives, promoting a more cohesive economic approach.

n

He further emphasised the importance of leaders implementing reforms and ensuring that policies yield tangible outcomes, cautioning that without execution, tax reforms and policies remain ineffective.

n

Oyedele concluded by calling for unity and sustained commitment to reform, underscoring the importance of collective action in achieving Africa's long-term economic prosperity.