The Federal Government has pledged to work with the global Financial Action Task Force (FATF) to combat illicit financial flows.
It also explained that the administration of President Bola Tinubu is undertaking bold economic measures to turn Nigeria’s economy towards sustainable growth after the multiple shocks it suffered due to the global economic downturn.
The President, represented by Vice President Kashim Shettima, stated this on Friday in an address titled “A Shared Vision for Africa’s Growth” at the ongoing African Caucus meeting in Abuja.
He said that poverty and inequalities have widened the gap between Africa and other regions of the world, requiring urgent action to address.
“As a government, we have initiated bold economic reforms aimed at steering our economy away from the downturns caused by multiple shocks in the global economy towards a path of recovery and resilience through significant economic transformation.
“Our reform efforts have been strategically focused on fostering fiscal and monetary efficiency, driving sustained long-term economic growth, and catalyzing job creation in alignment with the SDGs’ priorities.
“We remain committed to optimizing our economic potential, delivering favorable outcomes for our citizens, and ensuring the overall sustainable development of the regional economy. Our efforts are yielding positive results, with improved macroeconomic stability and increased investment.”
President Tinubu noted that the caucus meeting is an important platform to share experiences, forge partnerships, and chart a collective path forward.
He added, “Africa’s story is one of resilience, creativity, and hope. Indeed, we have made significant strides in recent years, with many of our nations achieving remarkable economic growth, social progress, and political stability.”
The President stated, “We need enhanced international tax cooperation to combat illicit financial flows and ensure that multinationals contribute fairly to our economies. We must also foster global economic cooperation to tackle shared challenges and leverage opportunities.
“However, we must also acknowledge the need to take responsibility for our own development by undertaking the difficult structural and fiscal reforms required to boost long-term growth and enable reinvestment into our economies through infrastructure and effective social spending.”
He stressed the need for robust human capital development on the continent, citing India as an example, a major player in the global outsourcing sector, earning over $100 billion from it.
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, in his address, said that with the African Continental Free Trade Agreement (AfCFTA), the continent was in an era of a new threshold and urged countries in the region to work together to raise intra-African trade to the advantage of all.
He said, “The continent now stands on the threshold of a new era in African economic cooperation through the African Continental Free Trade Area (AfCFTA), the largest such agreement in the world by both area and number of countries.
“According to data from the World Trade Organization, intra-African trade accounts for an estimated 13.0 percent of the continent’s total trade, compared to 60.0 percent in Europe and 40.0 percent in North America. This indicates that significant efforts are needed to build a robust, economically diversified, and prosperous Africa.
“As monetary authorities, we have the responsibility to formulate policies that enhance trade among countries on the continent. We can achieve this by fostering a financial landscape that encourages collaborative research and development (R&D) to support our industries and generate economic wealth for our growing populations.
“Decisions on currency convertibility, cross-border transactions, payment systems, cross-border movements of our peoples, goods, and services, as well as financial policy, will be instrumental in determining the success of the AfCFTA.”
Chairperson of the Caucus and Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said, “Based on available data, 41 African countries are set for stronger growth of up to 3.8 percent from about 3.4 percent in 2022, rising to 4.3 percent in 2025. These exceed the global average of about 3.2 percent.”
Mr. Edun, who addressed delegates comprising African Ministers of Finance, Governors of Central Banks, and representatives of global financial institutions, urged African leaders to position the region to take advantage of its youthful population to grow its Gross Domestic Product (GDP).
He called on African countries to trade more among themselves and speak with a single voice to create greater synergy that would bring about the desired transformation, development, and growth.