Africa must spend wisely, not just raise revenue — Oyedele

By Emma Ujah, Abuja Bureau Chief

ABUJA — The Minister of State for Finance, Taiwo Oyedele, has urged African countries to prioritise prudent spending alongside revenue generation to achieve sustainable development.

Oyedele made the call at the close of the African Union’s Specialized Technical Committee meeting on Finance, Tax and Illicit Financial Flows in Abuja.

He stressed that fiscal strength goes beyond revenue mobilisation, noting that it also involves effective resource management to ensure stability and long-term growth.

“Fiscal strength is not just about revenue; it is about sovereignty, stability, and sustainable development. If we mobilise resources optimally and spend wisely, we will build and secure the Africa we deserve,” he said.

The minister identified illicit financial flows as a major threat to Africa’s economic progress, describing them as a drain on resources needed for critical infrastructure and social services.

“Every naira, shilling, rand or dollar lost to illicit financial flows is a school not built, a hospital not equipped, and a job not created,” he added.

Oyedele called for stronger transparency systems, including beneficial ownership registers, enhanced cross-border cooperation, and improved data utilisation to tackle the challenge.

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.

“Africa must not be a passive participant in the global digital economy. We must build capacity for digital tax administration and coordinate our policies more effectively,” he said.

The minister emphasised the need for greater collaboration among African nations, noting that fragmented policies weaken the continent’s economic potential. He highlighted the role of the African Continental Free Trade Area in aligning fiscal systems with trade objectives.

Oyedele further urged leaders to implement reforms and ensure policies translate into tangible outcomes.

“Without execution, tax reforms remain documents, policies remain intentions, and opportunities remain unrealised,” he said.

He concluded by calling for unity and sustained commitment to reform, stressing that collective action is essential for Africa’s long-term economic prosperity.

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