• hail Nigeria’s role in leading African group

From Juliana Taiwo-Obalonye, Accra, Ghana

The hall at Alisa Hotel Accra, Ghana, venue of the 11th Pan-African Conference on Illicit Financial Flows and Taxation (PAC) erupted in excitement and applause with the resolution on promotion of inclusive and effective International Tax Cooperation in the United Nations proposed by Nigeria on behalf of the African group which has  been adopted by the 2nd Committee of the Assembly in New York.

PAC2023, holding in Accra from 22nd  to 24th  November  2023, organised by Tax Justice Network Africa (TJNA) and The African Tax Administration Forum (ATAF), aimed to get tax stakeholders unpack domestic resource mobilisation and illicit financial flows issues in Africa.

Executive Director, TJNA, Chenai Mukumba, who stopped the proceedings at the conference to get members to watch the voting process, said it was a treat to see history in action.

The resolution at the UN, aimed at fostering cooperation among nations to address tax-related challenges, garnered widespread support from member states. It underscored the importance of international tax cooperation in achieving sustainable development and addressing issues such as tax evasion and illicit financial flows.

Nigeria’s Ambassador to the UN, Tijjani Muhammad-Bande, who led the argument for the African group, expressed gratitude for the adoption of the resolution, emphasising its potential to contribute to global efforts in ensuring fair and equitable tax systems.

The successful adoption of Nigeria’s resolution on international tax cooperation, they say, reflects a significant milestone in the ongoing efforts to promote inclusive and effective global tax governance, with potential far-reaching implications for the international community.

The resolution, they added reflects the commitment of the African group to advancing international tax cooperation for the collective benefit of nations.

They further noted that the adoption of this resolution marks a significant step towards enhancing transparency and fairness in the global tax landscape. And that it sets the stage for collaborative action to tackle cross-border tax challenges and promote inclusive economic growth.

The delegates also noted that the resolution’s adoption is a testament to the UN’s commitment to addressing global economic issues and fostering cooperation among nations. It also signals a positive stride towards achieving the Sustainable Development Goals and promoting a more equitable international tax framework.

The resolution’s adoption is expected to pave the way for concrete actions and initiatives aimed at strengthening international tax cooperation, ultimately contributing to the advancement of a more just and equitable global economic system.

Senior Manager, Africa Tax Administration Forum, Thulani Shongwe, said: “I think we just witnessed a historic moment and as an African I am very proud  that for the first time probably since independence we’ve seen our countries uniting under a singular objective and I think that should be applauded.

“This is a great statement of African leadership that we have just witnessed and for any doubters in the world about the unity of Africa, that was put to rest this afternoon (Wednesday).

“Now, I think we have our work cut  out because probably the beginning of many many technical fights, position and place  and other areas of ensuring that African positions are taken on board.

“So from us at Africa Tax Administration Forum, our perspective is that the future looks very exciting, challenging, promising and it certainly feels exciting to be part of that”.

A policy officer at the African Union Commission, Dr Patrick Olomo Ndazana, in his reaction at an impromptu panel discussion on the resolution said, “In fact you cannot just imagine what just happened now. Few months ago when we started this conversation on reverting unequal processes in which we are, people felt it was just a dream and that we will not be able to achieve it. I told some colleagues in New York that there’s nothing that can defeat us when we are united. There’s nothing that is impossible because we have the power of numbers in terms of population, in terms of opportunities. Because we are the ones fueling the global prosperity and unfortunately this is not well said and emphasised.

“It tells you that we are are determined at this point in time to make things work in africa, no matter how difficult it will be,  we will gradually move towards there.”

Member, High-Level Panel on Illicit Financial Flows, Hon. Irene Ovonji-Odida, on her part said, “it’s a beautiful day and that’s all I can day. It’s been a lot of work to get to this point and for me it just illustrates the importance of coordination and of everyone doing their bit. “There’s been a lot of pressure on the Nigerian mission in New York, we have to say congratulations Africa and I think we really have to say Nigeria has done us proud. Of course Egypt has been the facilitator. The partnership between the global south, Africa, Latin America and also the role of civil society in supporting governments, missions, that was huge.”

She advised that the work must continue before it gets to the 5th committee which is on budget before to defeat any possible obstacles before it goes to the General assembly.

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“Moving forward, talking about the technicalities of this, one of concerns, the pressures that the guys that were leading were put under, will be around funding. There’s still a lot of work to do but today is a great day”, Ovonji-Odida said.

Pan-Africanist and Lawyer, Brian Kagoro, said “the first act of liberation is defiance but it has to be

followed by the second act of liberation which is creating self reliance based on mutually beneficial solidarities.

“If you analyse the votes, all the tax havens voted against UN, the second analysis is who voted, who abstained. But the reason for some of those who abstained might be slightly different and in there is a corridor for potential support.

“Those who voted in support represents more than two thirds of the world’s population. In terms of GDP value it is equally a high number, in terms of global equity value, those who voted against represented a higher equity value. Why? Because that equity is based on extortionist system that they are voting to defend.

“It therefore means going forward, as we celebrate this moment we must build the next three steps.  What are they? Without a popular movement that goes beyond, for those of us that understands taxation, this is going to suffer a sort of reversal. Number one, popularize the victory, popularize the understanding of why taxation issues are important, popularize why this is linked to repatriation for climate justice.

“Number two, get all those African mercenaries models  and missionaries models who do not believe Africa should go this way because they do not believe the interest of their masters and those who pay for consultancy to come on board. Because suddenly you need to study to see how to make this work. Invest in the knowledge to make this work.

“The Europeans, Americans, the Canadians are going to come with all sort of scholarships trying to discredit this. You fight narrative with narrative, knowledge with knowledge, evidence with evidence. If there’s no alternative evidence, soon your people will start believing this.

“Lastly, anticipate blackmail, cajoling and all sorts. How do you work with this? It cannot continue to be my brothers, it cannot be the wrong person with the three powerful sisters. Now all of African Union, All of ECOWAS, all of SADC all of the approach.

“It was Chenai in her opening remarks that said stand up to, we stood up to.

“As we analyse the financial value of the votes for, analyse the potential financial value in digital economic taxation of space economy, ocean the coming or blue economy and carbon economy. These countries that voted for represent 80% of the carbon economy of the future, China alone represents 70% of the digital economy going to the future.”

Hon. Abdullahi Saad Abdulkadir, former member of House of Representatives, Ningi/Warji Federal Constituency and Special Assistant to the Speaker on Sustainable Development goals,  thanked God for making him part of this historic moment when the Nigerian-led African group at the UN was able to duly adopted.

He said, “This is a watershed moment in the struggle that Africa and the global south have been making to ensure a fairer financial system and architecture. We are really pleased with the outcome.

“This is the first step in the new direction, more work needs to be done. The next thing is that this issue is moving to the 5th committee which deals with budget and financial issues surrounding the implementation is going to be treated. And thereafter, the general assembly of the UN. But we are optimistic that it has passed the crucial stage.”

Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), Auwal Ibrahim Musa Rafsanjani, said the civil society organizations should be applauded for not resting and pushing the advocacy until victory at last.

He said: This is to applaud the work of CSOs because to be fair, they have been the ones working and promoting, advocating for inclusive  taxation at global level. It is time for African governments to realise and understand the patriotic intervention many CSOs are doing at regional, national and global level.

“CSOs are not antagonistic to governments but work for what will be beneficial to government, our region and our continent.  So what happened today is collaborative and solidarity work between CSOs and government promoting inclusivity in taxation.

“So the era of attacking civil society for demanding for accountability should end. This clearly shows CSOs are making tremendous contribution to our continents, regions and nations, because without the CSOs, it would have been difficult to arrive at this favourable outcome.

“The credit will go to Nigerian mission in New York as well as CSOs in Africa generally that have been working for inclusive taxation at global level.

“It shows that as Africans if we are focused, with our numeral strength, we should be able to achieve more. CISLAC has advocacy status in New York and we will continue to support our government, our region and our continent.”