By Emmanuel Jonathan
In Abuja, beneath the chandeliers of the Transcorp Hilton Hotel, a crucial conversation on Africa’s economic future unfolded; one that signalled a shift away from aid dependence toward self-reliance, fiscal discipline, and a shared determination to shape the continent’s destiny.
The Fifth Session of the Sub-Committee on Tax and Illicit Financial Flows, convened under the African Union, brought together finance ministers, tax administrators, policymakers, and development partners to chart a path toward stronger revenue systems and sustainable economic transformation.
The Theme of the session was, “Building The Africa We Want Through Tax And Fiscal Policy Reforms To Support Economic Growth And Domestic Resource Mobilization.”
Across the halls, one message rang clear: Africa must take control of its financial future by tightening tax systems, closing loopholes, and confronting illicit financial flows that continue to drain billions from its economies each year.
A Continent at a Crossroads
The urgency was unmistakable. Africa stands at a defining moment, where rising demands for infrastructure, climate adaptation, and social protection are colliding with limited fiscal space and persistent revenue leakages.
“Africa loses about $88 billion every year to illicit financial flows; money that should be building our schools, hospitals, roads, and industries,” Nigeria’s Finance Minister, Wale Edun declared.
However, beyond the warning was a note of optimism. Edun pointed to a changing global landscape that, while uncertain, offers Africa an opening to rethink its economic strategy and assert greater control over its development path.
“We must act with urgency but also with confidence. Africa has the resources, the talent, and the institutional strength to succeed,” he said.
Driving the point home, Edun called for unity of purpose and bold leadership across the continent.
“This is the moment to act decisively and collectively so as to deepen reforms, strengthen cooperation, and finance our future from within,” he stressed.
At its core, his message marked a clear departure from the past; away from dependence on external financing and toward resilient, transparent fiscal systems anchored in the African Union’s Agenda 2063 vision.
Nigeria’s Leadership and Reform Push
As host, Nigeria used the platform to position itself at the forefront of Africa’s fiscal reform drive. The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, PhD, made a strong case for modernising tax administration as a foundation for development.
“Governments must meet growing demands funding infrastructure, social protection, and industrialisation while plugging the massive losses from illicit financial flows and tax avoidance,” he said.
But beyond the challenges, Adedeji viewed the moment as one of opportunity where stronger institutions and smarter systems can redefine governance and state capacity across Africa.
“Revenue authorities are at the frontline. Effective tax systems don’t just raise money instead they build trust, strengthen governance, and power sustainable development,” he noted.
This, he emphasised, is why tax reform has become central to economic policy across the continent, as countries increasingly recognise that strong revenue systems are the backbone of stability and growth.
He pointed to Nigeria’s own efforts in expanding the tax base, improving compliance, and deploying digital tools as part of a broader push to align fiscal policy with national development priorities.
While noting that the challenge extends beyond national borders Adedeji warned, “Illicit financial flows do not respect boundaries. They thrive on weak coordination. That is why continental cooperation is no longer optional; it is essential,”
Taxation Beyond Revenue: A Tool for Transformation
If there was a unifying idea from the session, it was this: taxation must evolve. No longer just a tool for revenue collection, it is increasingly seen as a driver of economic transformation.
“Strengthening domestic revenue systems is no longer a choice; it is a necessity,” said Chenai Mukumba, Executive Director of Tax Justice Network Africa.
With external financing shrinking and debt pressures rising, Mukumba stressed the need for African countries to collaborate more closely on tax policy and administration.
Participants pushed the conversation further by arguing that tax systems must actively support industrialisation, encourage value addition, and attract productive investment.
“No country can solve today’s tax challenges alone. Cooperation, information sharing, and policy alignment are our strongest tools,” she said.
The real test, Mukumba argued, lies in execution, building systems that close loopholes, strengthen institutions, and deliver measurable outcomes.
“We must move from policy to practice; invest in data, strengthen capacity, and eliminate the gaps that allow revenue to slip away,” she added.
Ultimately, she called for a more strategic approach; one that places tax policy at the centre of Africa’s broader economic transformation agenda.
“Taxation must support industrial growth, protect our tax base, and discourage harmful competition. It must sit at the heart of our development strategy,” she concluded.
Global Pressures and Africa’s Response
Overlaying these discussions is a rapidly shifting global environment. From post-pandemic recovery to geopolitical tensions, African economies are navigating a complex and uncertain landscape.
“The pressures are real; from inflation to global demand shocks, and they are testing fiscal resilience across the continent,” Mary Baine, Executive Secretary of the African Tax Administration Forum, said.
While some oil-exporting nations may see temporary gains, she cautioned that rising costs and economic volatility threaten to erode those benefits, particularly for more vulnerable economies.
Even with gradual improvements, Africa’s tax-to-GDP ratio still trails global averages, an imbalance Baine says must be urgently addressed.
“Closing this gap is critical not just for stability, but for achieving our long-term development goals,” she stressed.
ATAF, she noted, is stepping up support; helping countries strengthen systems, build capacity, and translate policy into real results on the ground.
That support is already yielding measurable outcomes revealing that, “in 2025 alone, ATAF-supported programmes delivered nearly $908 million in tax assessments, with about $686 million successfully collected.
“We have also trained over 2,400 tax officials across Africa, strengthening expertise in critical areas like transfer pricing and tax audits.”
Behind these figures lies a broader push for collaboration through shared tools, joint initiatives, and cross-border cooperation aimed at tackling illicit flows more effectively.
At the heart of it all is a shared commitment as “Africa’s future will be shaped by the choices we make today, through reform, cooperation, and solidarity,” Baine said.
The Global Tax Debate: Risks and Opportunities
Beyond the continent, Africa is also navigating a changing global tax landscape. New rules, including the global minimum tax, are redefining how countries claim taxing rights in an increasingly interconnected economy.
“This is a historic opportunity for Africa to shape a fairer global tax system, but only if we engage strategically and collectively,” Baine noted.
Without that coordination, she warned, African countries risk losing out to more advanced economies in the ongoing negotiations.
Encouragingly, African stakeholders are already stepping forward, working with institutions like the United Nations Economic Commission for Africa to influence the emerging framework.
Progress is evident; not only in policy engagement, but also in improved tax administration and stronger institutional capacity across the continent.
Efforts to deepen cooperation, including agreements on mutual assistance in tax matters, are further strengthening the tools needed to combat illicit financial flows.
A Defining Moment for Africa
As the session drew to a close, one idea stood above all others: Africa’s development must come from within.
“Africa’s development will not be outsourced; it must be built by Africans, for Africans,”
From Nigeria’s reform drive under President Bola Ahmed Tinubu to wider continental efforts, a shift is underway; toward proactive, homegrown solutions rooted in accountability and innovation.
The conversations in Abuja made one thing clear: progress will demand courage, collaboration, and sustained commitment across governments and institutions.
In the end, Africa’s prosperity will depend on its ability to mobilise its own resources, protect its wealth, and build fiscal systems that truly serve its people.
And in that sense, the Abuja meeting may well mark a turning point; where ambition met action, and where the foundations of a more self-reliant Africa were firmly laid.
*Emmanuel Jonathan is a communications expert based in Abuja.