At the Fifth Session of the Sub-Committee on Tax and Illicit Financial Flows, finance ministers, tax administrators, and policymakers gathered to discuss Africa's economic future. The session, convened under the African Union, aimed to strengthen revenue systems and promote sustainable economic transformation. Nigeria's Finance Minister, Wale Edun, emphasized the urgency of the situation, stating that Africa loses about $88 billion annually to illicit financial flows.
The continent is at a crossroads, with rising demands for infrastructure, climate adaptation, and social protection colliding with limited fiscal space and revenue leakages. Edun called for unity of purpose and bold leadership to deepen reforms and finance Africa's future from within. The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, made a strong case for modernizing tax administration as a foundation for development.
Adedeji viewed the moment as an opportunity for stronger institutions and smarter systems to redefine governance and state capacity across Africa. He emphasized that tax reform has become central to economic policy, as countries recognize that strong revenue systems are the backbone of stability and growth. Chenai Mukumba, Executive Director of Tax Justice Network Africa, stated that strengthening domestic revenue systems is no longer a choice, but a necessity.
The session highlighted the importance of taxation as a tool for transformation, beyond just revenue collection. It is increasingly seen as a driver of sustainable development, building trust, strengthening governance, and powering growth. The African Tax Administration Forum's (ATAF) supported programs have delivered significant outcomes, with nearly $908 million in tax assessments and $686 million successfully collected in 2025 alone.
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