The African Development Bank (AfDB) Group has approved a $5.52 million grant aimed at strengthening tax administration and improving domestic revenue mobilisation in Nigeria and several other West African countries.
The grant agreement, signed with the West African Tax Administration Forum (WATAF), is expected to support efforts to modernise tax systems, enhance governance, and improve revenue collection across the region. The initiative will help governments create the fiscal space needed to fund development projects without excessive reliance on external borrowing.
AfDB officials noted that stronger tax systems are key to boosting economic growth, curbing revenue leakages, and improving efficiency in both domestic taxation and the management of natural resource revenues. The project also marks the first region-wide tax administration programme financed by the bank.
The initiative, known as the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), will support six countries—Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone. It will provide technical assistance to modernise tax and customs systems, strengthen oversight, and improve transparency through the use of digital tools.
The project will also promote regional collaboration through WATAF and the Economic Community of West African States (ECOWAS), encouraging knowledge sharing and coordinated reforms among tax authorities. Key deliverables include electronic invoicing systems, improved transfer-pricing tools for the extractive sector, and enhanced Value Added Tax and customs administration.
Set to run until July 2030, the programme will be overseen by a steering committee comprising representatives from WATAF, ECOWAS, and participating countries, with a dedicated implementation unit managing day-to-day operations.
Nigeria is expected to benefit significantly from the initiative, especially following recent tax reforms signed into law by President Bola Tinubu. The new laws, which took effect in January 2026, are designed to transform the country’s tax system, increase revenue generation, and create a more business-friendly environment.
With additional support from the AfDB project, Nigeria and its regional partners are expected to strengthen fiscal resilience, improve transparency, and drive sustainable economic development.
