African Development Bank (AfDB) don approve $5.52 million grant to help strengthen tax administration and improve revenue collection for Nigeria and other countries for West Africa.
The development come through new agreement wey the bank sign with West African Tax Administration Forum (WATAF), according to statement wey AfDB release during the weekend.
The project go help participating countries modernise their tax systems, improve governance and increase government revenue to support development projects across the region.
AfDB Explain Importance Of Strong Tax System
According to the bank, better tax administration dey very important for West African countries wey want increase domestic revenue and reduce dependence on foreign loans.
Abdul B. Kamara, Director-General of AfDB for Nigeria, say stronger tax systems go create more financial capacity for governments to fund development programmes.
He explain say the project go help governments improve revenue collection efficiency, block leakages and strengthen governance for taxation and management of revenue from natural resources.
Also speaking, Jules Tapsoba, Executive Secretary of WATAF, describe the programme as major milestone because na the first region-wide tax administration project wey AfDB don finance.
Project Go Strengthen Revenue Systems Across Region
The initiative launch new programme called Strengthening Tax Administration Capacity Project in West Africa (STACP-WA).
The funding go come through the African Development Fund under its Transition Support Facility.
Six West African countries go benefit directly from the programme including Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia and Sierra Leone.
The project go provide technical support to help tax authorities modernise tax and customs administration and also improve monitoring of revenue from natural resources.
Digital technology tools go also be introduced to increase transparency in revenue collection and reduce illegal financial flows.
The programme expected to run until July 30, 2030, under supervision of steering committee wey include representatives from WATAF, Economic Community of West African States (ECOWAS) and participating countries.
Nigeria Tax Reforms Also Part Of Wider Changes
The development come as Nigeria dey already implement major tax reforms under President Bola Tinubu administration.
The President recently sign four major tax reform laws including Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Joint Revenue Board of Nigeria Act 2025 and Nigeria Revenue Service Act 2025.
The laws start operation from January 1, 2026 and government expect say the reforms go increase revenue generation, improve business environment and attract more investment into the country.
Under the AfDB-supported initiative, Nigeria and other countries for the region go benefit from digital platforms, analytical tools and policy research products developed through the programme.
Nigeria tax authorities also expected to work with WATAF and ECOWAS to provide technical support and share knowledge with other countries wey dey participate.
Some key outcomes of the project include development of electronic invoicing systems, better transfer-pricing assessment tools for extractive industries and training programmes aligned with the African Continental Free Trade Area framework.
AfDB officials say strengthening tax administration across West Africa go help governments build stronger economies and finance development projects without relying too much on borrowing.
