AfDB Grants $5.52 Million to Strengthen Tax Systems in West Africa

The agreement was signed by Abdul B. Kamara, Director General of the African Development Bank Group for Nigeria, and Jules Tapsoba, Executive Secretary of WATAF.

The African Development Bank Group (AfDB) has signed a $5.52 million grant agreement with the West African Tax Administration Forum (WATAF) to support a major regional initiative aimed at strengthening tax administration systems across West Africa.

The funding will launch the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), designed to help countries mobilize and manage domestic revenues more effectively while improving governance and transparency in fiscal systems.

The grant will be financed through the Transition Support Facility (TSF) of the African Development Fund (ADF), the concessional lending arm of the African Development Bank Group.

Strengthening Revenue Systems Across the Region

The agreement was signed by Abdul B. Kamara, Director General of the African Development Bank Group for Nigeria, and Jules Tapsoba, Executive Secretary of WATAF.

The initiative reflects a shared commitment to improving tax administration capacity and building more resilient fiscal systems that can support sustainable economic development in West Africa.

STACP-WA will focus on modernizing tax and customs administration while strengthening oversight of revenues from natural resources, an important sector for many West African economies.

The project also aims to reduce revenue leakages and combat illicit financial flows, which continue to undermine public finances across the region.

Supporting Fiscal Sustainability and Regional Integration

The initiative represents a significant investment in fiscal sustainability and regional cooperation.

Key components of the project include:

• Modernizing tax and customs administration systems

• Strengthening oversight of revenues from extractive industries

• Developing digital tools to improve tax compliance

• Enhancing policy coordination across West African countries

The programme will combine analytical research, technical assistance, digital innovations, and policy dialogue to align national tax systems with regional and international standards.

Regional Tools and Knowledge Platforms

The project will deliver several regional resources to strengthen tax administration capacity.

These include:

• A new electronic invoicing toolkit to improve tax reporting

• Training programmes aligned with the African Continental Free Trade Area (AfCFTA)

• Enhanced transfer pricing assessment tools for monitoring the extractive sector

• A West African research platform for young tax scholars

In addition, the project will provide targeted assistance to participating countries in areas such as:

• Value Added Tax (VAT) implementation

• Customs valuation systems

• Mining sector governance

• Gender-responsive tax policy

Participating Countries and Regional Partners

Six countries will be the primary beneficiaries of the project:

• Burkina Faso

• Guinea

• Guinea-Bissau

• The Gambia

• Liberia

• Sierra Leone

WATAF will act as the executing agency, working closely with regional partners including the Economic Community of West African States (ECOWAS) and the Nigeria Revenue Service (NRS).

ECOWAS is expected to benefit from the regional tools, data platforms, and policy resources developed through the project.

Supporting Long-Term Economic Transformation

Speaking at the signing ceremony, AfDB Director General Abdul B. Kamara said stronger tax systems are essential for enabling countries to finance their own development priorities.

“Strengthening tax administration is essential for creating the fiscal space that will enable countries to finance their development priorities,” Kamara said.

He noted that the project will support reforms aimed at improving efficiency, reducing revenue losses, and strengthening governance.

“These efforts will deliver long-term benefits for regional stability and economic transformation in West Africa,” he added.

Milestone for Regional Tax Cooperation

WATAF Executive Secretary Jules Tapsoba described the initiative as a major milestone for both the organisation and the region.

“This marks the first time WATAF is implementing a region-wide tax administration project financed by the African Development Bank Group,” Tapsoba said.

He added that the partnership would help member countries strengthen domestic revenue systems and improve coordination among tax administrations across West Africa.

Implementation and Governance

The project will be managed by a Project Implementation Unit (PIU) within WATAF and overseen by a Project Steering Committee (PSC) representing ECOWAS, WATAF leadership, and participating countries.

Implementation is scheduled to continue until 30 July 2030, with a strong emphasis on institutional strengthening and long-term sustainability.

The African Development Bank Group said the initiative reflects its broader commitment to helping African countries build stronger financial systems and increase resilience to economic shocks.