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By Uche Usim
The African Development Bank Group (AfDB) has approved a $5.52 million grant aimed at strengthening tax administration and improving domestic revenue mobilisation in Nigeria and several West African countries.
The development was disclosed in a weekend issued by the bank announcing the signing of a grant agreement with the West African Tax Administration Forum (WATAF).
The initiative is expected to help participating countries modernise their tax systems, strengthen governance structures and boost revenue collection to support development priorities across the region.
According to the bank, improving tax administration has become increasingly critical for West African governments seeking to expand domestic revenue and reduce their reliance on external borrowing.
The bank noted that more efficient tax systems would enable governments to generate the fiscal space needed to fund infrastructure, social services and other development programmes.
“Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa,” said Abdul B. Kamara, Director General of the African Development Bank for Nigeria.
“The project will help governments enhance efficiency in revenue collection, curb leakages, and strengthen governance in both domestic taxation and the management of extractive sector revenues,” he added.
The bank explained that the grant agreement formally launches the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), a regional programme designed to improve the ability of governments to mobilise, manage and safeguard domestic revenues.
Funding for the project will be provided through the African Development Fund under its Transition Support Facility.
Under the programme, tax administrations in six West African countries—Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia and Sierra Leone—will receive technical assistance to modernise tax and customs administration systems.
The initiative will also help participating governments strengthen oversight of revenues generated from natural resources, an area often vulnerable to revenue leakages and weak monitoring.
To support these reforms, digital tools and modern tax management systems will be deployed to improve transparency, efficiency and accountability in revenue collection.
The bank said the deployment of technology will help reduce illicit financial flows, plug revenue leakages and enhance overall governance in the tax system.
Executive Secretary of the West African Tax Administration Forum, Jules Tapsoba, described the initiative as a landmark step for regional tax cooperation.
He said the project represents the first region-wide tax administration programme financed by the African Development Bank.
Tapsoba noted that the initiative will strengthen collaboration among tax authorities across West Africa, helping them share best practices and adopt modern approaches to tax administration.
The AfDB also said the programme will promote stronger cooperation between WATAF and the Economic Community of West African States (ECOWAS), further deepening regional integration in tax governance and revenue mobilisation.
The project is expected to run until July 30, 2030.
Implementation will be overseen by a Project Steering Committee made up of representatives from WATAF, ECOWAS and the participating countries.
In addition, a dedicated Project Implementation Unit based within WATAF will coordinate the day-to-day execution of the initiative and ensure that participating countries benefit from the programme’s technical support and reforms.
The development comes at a time when many African governments are under increasing pressure to strengthen domestic revenue mobilisation amid rising debt levels and tightening global financial conditions.
For Nigeria, the move also aligns with recent tax reforms aimed at modernising the country’s fiscal framework and improving revenue generation.
Recently, President Bola Tinubu signed into law four major tax reform bills designed to overhaul Nigeria’s tax system.
The legislation includes the Nigeria Tax Act, 2025, the Nigeria Tax Administration Act, 2025, the Joint Revenue Board of Nigeria (Establishment) Act, 2025, and the Nigeria Revenue Service (Establishment) Act, 2025.
The new laws, which came into effect on January 1, 2026, are expected to significantly transform tax administration in the country.
Analysts say the reforms could lead to higher government revenue, a more transparent tax system and a more attractive environment for both domestic and foreign investors.
The AfDB said initiatives such as the new regional tax project will complement national reforms and help build stronger tax institutions across West Africa, ultimately enabling governments to finance development programmes more sustainably.
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By Uche Usim
The African Development Bank Group (AfDB) has approved a $5.52 million grant aimed at strengthening tax administration and improving domestic revenue mobilisation in Nigeria and several West African countries.
The development was disclosed in a weekend issued by the bank announcing the signing of a grant agreement with the West African Tax Administration Forum (WATAF).
The initiative is expected to help participating countries modernise their tax systems, strengthen governance structures and boost revenue collection to support development priorities across the region.
According to the bank, improving tax administration has become increasingly critical for West African governments seeking to expand domestic revenue and reduce their reliance on external borrowing.
The bank noted that more efficient tax systems would enable governments to generate the fiscal space needed to fund infrastructure, social services and other development programmes.
“Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa,” said Abdul B. Kamara, Director General of the African Development Bank for Nigeria.
“The project will help governments enhance efficiency in revenue collection, curb leakages, and strengthen governance in both domestic taxation and the management of extractive sector revenues,” he added.
The bank explained that the grant agreement formally launches the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), a regional programme designed to improve the ability of governments to mobilise, manage and safeguard domestic revenues.
Funding for the project will be provided through the African Development Fund under its Transition Support Facility.
Under the programme, tax administrations in six West African countries—Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia and Sierra Leone—will receive technical assistance to modernise tax and customs administration systems.
The initiative will also help participating governments strengthen oversight of revenues generated from natural resources, an area often vulnerable to revenue leakages and weak monitoring.
To support these reforms, digital tools and modern tax management systems will be deployed to improve transparency, efficiency and accountability in revenue collection.
The bank said the deployment of technology will help reduce illicit financial flows, plug revenue leakages and enhance overall governance in the tax system.
Executive Secretary of the West African Tax Administration Forum, Jules Tapsoba, described the initiative as a landmark step for regional tax cooperation.
He said the project represents the first region-wide tax administration programme financed by the African Development Bank.
Tapsoba noted that the initiative will strengthen collaboration among tax authorities across West Africa, helping them share best practices and adopt modern approaches to tax administration.
The AfDB also said the programme will promote stronger cooperation between WATAF and the Economic Community of West African States (ECOWAS), further deepening regional integration in tax governance and revenue mobilisation.
The project is expected to run until July 30, 2030.
Implementation will be overseen by a Project Steering Committee made up of representatives from WATAF, ECOWAS and the participating countries.
In addition, a dedicated Project Implementation Unit based within WATAF will coordinate the day-to-day execution of the initiative and ensure that participating countries benefit from the programme’s technical support and reforms.
The development comes at a time when many African governments are under increasing pressure to strengthen domestic revenue mobilisation amid rising debt levels and tightening global financial conditions.
For Nigeria, the move also aligns with recent tax reforms aimed at modernising the country’s fiscal framework and improving revenue generation.
Recently, President Bola Tinubu signed into law four major tax reform bills designed to overhaul Nigeria’s tax system.
The legislation includes the Nigeria Tax Act, 2025, the Nigeria Tax Administration Act, 2025, the Joint Revenue Board of Nigeria (Establishment) Act, 2025, and the Nigeria Revenue Service (Establishment) Act, 2025.
The new laws, which came into effect on January 1, 2026, are expected to significantly transform tax administration in the country.
Analysts say the reforms could lead to higher government revenue, a more transparent tax system and a more attractive environment for both domestic and foreign investors.
The AfDB said initiatives such as the new regional tax project will complement national reforms and help build stronger tax institutions across West Africa, ultimately enabling governments to finance development programmes more sustainably.
