Zacch Adedeji has called on African nations to take stronger action against illicit financial flows, tax evasion, and aggressive tax avoidance, stressing that these issues continue to drain resources needed for development.
Speaking at a high-level African Union meeting on tax and illicit financial flows in Abuja, Adedeji warned that billions of dollars are lost annually across the continent through illegal financial activities such as trade mispricing and hidden corporate transactions. He noted that these losses deprive African countries of funds that could be used to improve infrastructure, healthcare, education, and other critical sectors.
He emphasized that tackling the problem requires collaboration among nations, as such financial flows often cross borders and exploit weak regulatory systems. Strengthening tax administration, he added, is essential to improving revenue generation, governance, and public trust.
Adedeji also highlighted Nigeria’s ongoing efforts to reform its tax system, including expanding the tax base, improving compliance, and adopting technology to enhance transparency and efficiency. These reforms, he said, are part of a broader strategy to boost domestic revenue and create a stable environment for investment.
Meanwhile, Mary Baine, Executive Secretary of the African Tax Administration Forum, stressed the importance of increasing domestic revenue mobilisation across Africa, especially amid global economic uncertainty. She noted that although tax-to-GDP ratios are improving, they still fall short compared to other regions.
Baine pointed out that global tax reforms, including the OECD’s minimum tax framework, present both opportunities and risks for African economies. She urged that such reforms should not weaken Africa’s ability to protect its tax base.
She also highlighted the role of the United Nations framework on international tax cooperation in promoting fairness and inclusiveness in global tax systems. According to her, ATAF has supported African countries with technical expertise and policy tools, helping generate over $900 million in additional tax assessments in 2025.
Both speakers agreed that stronger coordination among African countries is necessary to ensure the continent’s interests are fully represented in global tax discussions and to secure sustainable economic growth.
