AfDB Approves $5.52m Grant To Strengthen Tax Administration Across W/Africa

The African Development Bank Group (AfDB) has approved a $5.52m grant aimed at strengthening tax administration systems and enhancing domestic revenue mobilisation across West Africa, as governments in the region seek to improve fiscal sustainability and reduce reliance on external borrowing.

The bank disclosed in a statement over the weekend that the grant agreement was signed with the West African Tax Administration Forum (WATAF) to implement a regional programme designed to modernise tax administration, strengthen governance structures, and improve efficiency in revenue collection.

According to the bank, the initiative will support participating countries in building stronger tax institutions capable of mobilising domestic resources needed to finance critical development priorities.

Director General of the AfDB for Nigeria, Abdul B. Kamara, said strengthening tax administration remains essential for West African economies striving to expand fiscal space and fund development programmes without excessive borrowing.
“Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa,” Kamara said.

He added that the project would help governments enhance efficiency in revenue collection, curb leakages, and strengthen governance in both domestic taxation and the management of revenues from the extractive sector.

The initiative, formally titled the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), will be implemented in partnership with WATAF and in collaboration with the Economic Community of West African States (ECOWAS).

The programme seeks to deepen regional cooperation among tax authorities while supporting reforms aimed at improving transparency and accountability in public revenue management.

Executive Secretary of WATAF, Jules Tapsoba, described the programme as a major milestone for the region, noting that it represents the first region-wide tax administration initiative financed by the AfDB.

Tapsoba said the project would strengthen institutional capacity among tax authorities, enhance knowledge sharing across countries, and support the adoption of modern technologies needed to improve tax compliance and enforcement.

Funding for the initiative will be provided through the African Development Fund, the concessional lending arm of the AfDB Group, under its Transition Support Facility.

The programme will directly support tax administrations in six West African countries: Burkina Faso, Guinea, Guinea‑Bissau, The Gambia, Liberia, and Sierra Leone.

Under the project, governments will receive technical assistance to modernise tax and customs administration systems, strengthen oversight of natural resource revenues, and improve transparency in revenue management.

Digital tools and data-driven systems will also be deployed to enhance efficiency in tax collection, reduce illicit financial flows, and limit revenue leakages that have historically undermined public finances across the region.

The project is expected to run until July 30, 2030, with oversight provided by a Project Steering Committee comprising representatives from WATAF, ECOWAS, and participating countries.

A dedicated Project Implementation Unit established within WATAF will coordinate the day-to-day execution of the programme, ensuring that reforms are effectively implemented and aligned with broader regional efforts to strengthen fiscal governance and economic resilience across West Africa.