AfDB Injects $5.5 Million to Modernize Tax Systems in West Africa

The African Development Bank (AfDB) has approved a $5.52 million grant to strengthen tax administration and improve domestic revenue mobilization in six West African countries, including Burkina Faso, Guinea, Guinea-Bissau, Gambia, Liberia, Nigeria, and Sierra Leone.

The initiative, led in partnership with the West African Tax Administration Forum (WATAF), aims to modernize fiscal and customs systems, reduce revenue leakages, and strengthen regional governance.

The project will also support the implementation of best practices in taxation within the extractive sector and in VAT administration, while encouraging cooperation among tax authorities through the Economic Community of West African States (ECOWAS). It is expected to continue until July 30, 2030, under the supervision of a regional steering committee and a dedicated unit within WATAF.

Abdul B. Kamara, AfDB Director General for Nigeria, highlighted that strengthening tax administration is key to expanding fiscal space in West Africa and reducing reliance on external borrowing.

“The project will help governments improve revenue collection efficiency, reduce leakages, and strengthen governance in both domestic taxation and extractive sector revenue management,” he said.

With funding of $5.5 million covering six West African countries, the project is expected to enhance fiscal revenue mobilization, improve collection efficiency, and enable governments to fund their development priorities while decreasing dependence on external debt.