Africa must spend wisely – Taiwo Oyedele

By Emma Ujah, Abuja Bureau Chief

Minister of State for Finance, Taiwo Oyedele, has advised that African countries should not only optimise revenue but must also spend wisely.

He spoke at the close of the African Union’s Specialised Technical Committee on Finance and Tax and Illicit Financial Flows, in Abuja on Thursday.

His words, “Fiscal strength is not just about revenue; it’s about sovereignty, stability, and sustainable development.

“If we get our tax systems right, if we close the leakages, if we mobilise resources optimally, and then spend wisely, then we will not only build the Africa we want, we will secure the Africa that we truly deserve.

“Africa needs to go far and fast. Africa’s future will not be defined by its challenges, but how decisively it responds to them.”

The minister also called for concrete steps to address Illicit Financial Flows from Africa, which he said has been responsible for underdevelopment on the continent.

With regards to tackling illicit financial flows, this remains one of the biggest threats to Africa’s fiscal sovereignty. What we have seen clearly is that it is not just a tax issue; it is a governance and development issue.

He said, “We must strengthen transparency systems, including beneficial ownership registers. We must enhance cross-border cooperation, use data more effectively, and ensure enforcement is credible and consistent.

“Every naira, every shilling, every rand, every dollar lost to illicit financial flow is a school not built, it’s a hospital not equipped, and it’s a job not created.”

Mr. Oyedele said Africa must not be passive on the global stage and it should work out the mechanism for effective tax digital transactions.

His words, “Tax value where it is created. Africa must not be a passive participant in the global digital economy.

“We must assert our taxing rights. We must build capacity for digital tax administration and engage strategically in global negotiations.

“The ongoing work at the United Nations and other platforms presents an opportunity we must not waste. And coordination is no longer optional. This is one very clear takeaway from this conference, because fragmentation is costing Africa.

“Whether in tax policy, whether in incentives, treaty negotiation, or enforcement, we must move toward greater coordination and harmonisation.”

He urged leaders on the continent to undertake reforms, where necessary, to create the African economy of the dream of its people.

“What is not working and what must change? The real test begins now, after this conference, and that is diligent execution. We must implement.

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

The minister called for cooperation among African countries in order to have a strong a more mutually beneficial economy.

The African Continental Free Trade Area, he said, “presents a unique opportunity to align our fiscal systems with our trade ambitions, because integration without coordination will not deliver results.”

He added, “Deepen collaboration across countries, across institutions, across regions; Stay committed to reform, even when it is difficult, because it will be difficult. Because reform is not optional. It is the seed for progress. If you don’t plant it, it will be hard for progress to come.

“And that’s because we are stronger together, but we must also remember that we are only as strong as our weakest link.

“Like the popular African saying, that if you wish to go fast, you go alone, but if you wish to go far, you must go together.”

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