The African Development Bank (AfDB) has approved a $5.52 million grant to strengthen tax systems in Nigeria and several West African countries, a move aimed at modernizing tax administration and boosting domestic revenue mobilization. The grant, announced over the weekend, formalizes a partnership with the West African Tax Administration Forum (WATAF) to improve governance and revenue collection across the region.
The initiative, known as the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), will provide technical assistance to tax administrations in Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone. The project focuses on modernizing tax and customs systems, deploying digital tools, and enhancing oversight of revenues, especially from natural resources, which are often vulnerable to leakages.
Abdul B. Kamara, Director General of the AfDB for Nigeria, emphasized the importance of the initiative, stating that efficient tax administration creates the fiscal space needed to fund infrastructure, social services, and other development priorities. “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 said.
The program also aims to foster regional cooperation among tax authorities, promoting the sharing of best practices and modern approaches to taxation. Jules Tapsoba, Executive Secretary of WATAF, described the project as a landmark for regional tax collaboration, noting it is the first region-wide tax administration program financed by the AfDB. The initiative will also strengthen coordination with the Economic Community of West African States (ECOWAS), supporting deeper regional integration.
For Nigeria, the grant complements recent national tax reforms under President Bola Tinubu, including four new tax laws enacted in 2025 to overhaul the fiscal framework and enhance revenue generation. Analysts suggest these combined reforms could increase government revenue, improve transparency, and attract both domestic and foreign investment. The AfDB project, which runs until July 2030, is expected to strengthen tax institutions across West Africa, enabling sustainable financing of development programs.
source: The sun