The African Development Bank (AfDB) Group has approved a $5.52 million grant to strengthen tax administration and boost domestic revenue mobilization in Nigeria and other West African countries. The grant agreement, signed between AfDB and the West African Tax Administration Forum (WATAF), aims to modernize tax systems, enhance governance, and improve revenue collection, providing critical support for development priorities across the region.

AfDB emphasized that robust tax administration is crucial for West African countries seeking to increase domestic revenue and reduce dependence on external borrowing. Stronger tax systems, the bank noted, create the fiscal space needed for governments to fund development projects. “Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa,” said Abdul B. Kamara, AfDB Director General for Nigeria. “The project will help governments improve efficiency in revenue collection, curb leakages, and strengthen governance in both domestic taxation and extractive sector revenues.”

YOU CAN ALSO READ: Tosin Akinwunmi Elected Chairman-Elect of ICAN Surulere District

Jules Tapsoba, Executive Secretary of WATAF, described the initiative as “a major milestone,” noting that it is the first region-wide tax administration project financed by AfDB. The grant launches the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), which will be managed through WATAF with support from the Economic Community of West African States (ECOWAS). The project is designed to enhance governments’ capacity to mobilize, manage, and safeguard domestic revenues, with a focus on modernizing tax and customs administration, strengthening oversight of natural resource revenues, and deploying digital tools to increase efficiency, transparency, and reduce illicit financial flows.

The project will run until July 30, 2030, with oversight from a Project Steering Committee comprising representatives from WATAF, ECOWAS, and participating countries. A dedicated Project Implementation Unit within WATAF will coordinate day-to-day execution. The funding will support six West African countries: Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone.

Nigeria has also been advancing tax reforms domestically. In a sweeping move, President Bola Tinubu recently signed four major tax reform bills—the Nigeria Tax Act, Nigeria Tax Administration Act, Joint Revenue Board of Nigeria Act, and Nigeria Revenue Service Establishment Act—effective January 1, 2026. These reforms are expected to transform tax administration, enhance revenue generation, improve the business environment, and attract both domestic and foreign investment.

With AfDB’s initiative, Nigeria and other ECOWAS countries will benefit from digital platforms, analytical tools, and policy knowledge products developed under the project. The Nigeria Revenue Service will contribute technical expertise and work alongside WATAF and ECOWAS to support implementation and knowledge sharing. Key deliverables include electronic invoicing systems, improved transfer-pricing tools for the extractive sector, and training modules aligned with the African Continental Free Trade Area framework. Additional support will target Value Added Tax administration, customs valuation, mining sector governance, and gender-responsive tax policy.

YOU CAN ALSO READ: The leadership conversations executives cannot ignore

AfDB officials maintain that strengthening tax systems is a critical step toward fiscal resilience, enabling governments across West Africa to finance development projects sustainably without excessive reliance on borrowing. The initiative represents a major push toward modern, transparent, and efficient tax administration in the region, laying the groundwork for long-term economic growth and development.