Business Briefings
AfDB Approves $5.52m Grant to Support Tax Reforms in Nigeria, West Africa
The African Development Bank (AfDB) Group has approved a $5.52 million grant aimed at strengthening tax administration and boosting domestic revenue mobilization in Nigeria and several West African countries.
The announcement was contained in a statement confirming the signing of a grant agreement between the AfDB and the West African Tax Administration Forum (WATAF). The initiative is designed to modernize tax systems, enhance governance structures, and improve revenue collection across the region.
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According to the AfDB, stronger tax institutions are essential for reducing reliance on external borrowing and creating fiscal space for governments to finance development priorities. The bank noted that improved revenue systems would help curb leakages and enhance efficiency in both domestic taxation and extractive sector revenue management.
Abdul B. Kamara, AfDB Director General for Nigeria, emphasized that strengthening tax administration remains critical for sustainable economic development in West Africa. He explained that the project will support efforts to enhance transparency, improve compliance, and reinforce governance frameworks.
Jules Tapsoba, Executive Secretary of WATAF, described the initiative as a significant milestone, noting that it represents the first region-wide tax administration project financed by the AfDB Group.
The grant will fund the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), which aims to improve governments’ ability to mobilize, manage, and protect domestic revenues. Funding will be provided through the African Development Fund’s Transition Support Facility.
The project will support six countries: Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone. Participating nations will receive technical assistance to modernize tax and customs systems, deploy digital tools for improved efficiency, and strengthen oversight of natural resource revenues.
The initiative will also promote regional cooperation among tax authorities through collaboration with WATAF and the Economic Community of West African States (ECOWAS). It is scheduled to run until July 30, 2030, under the supervision of a Project Steering Committee, with a dedicated implementation unit coordinating activities.