The African Development Bank Group (AfDB) has approved a $5.52 million grant to help West African countries strengthen their tax administration systems and improve domestic revenue collection, as governments in the region seek to reduce dependence on external borrowing and build stronger institutions capable of financing development priorities through locally generated funds.
The bank disclosed in a statement over the weekend that the grant agreement was signed with the West African Tax Administration Forum (WATAF) to implement a regional programme designed to modernise tax administration, strengthen governance structures, and improve efficiency in revenue collection across participating countries.
According to the AfDB, the initiative is intended to support governments in building stronger tax institutions capable of mobilising domestic resources required to fund national development priorities, particularly at a time when many West African economies are under increasing fiscal pressure.
The project, formally titled the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), will focus on improving the efficiency, transparency, and accountability of tax systems while strengthening cooperation among tax authorities across the region.
Director General of the AfDB for Nigeria, Abdul B. Kamara, said strengthening tax administration is critical for countries seeking to expand fiscal space and reduce reliance on debt.
“Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa,” Kamara said.
He noted that stronger tax systems would enable governments to generate more domestic revenue, helping them finance infrastructure, social services, and other development programmes without excessive borrowing.
Kamara added that the project would support reforms aimed at improving revenue collection efficiency while addressing long-standing challenges such as leakages and weak oversight.
“The programme will help governments enhance efficiency in revenue collection, curb leakages, and strengthen governance in both domestic taxation and the management of revenues from the extractive sector,” he said.
The initiative will be implemented in partnership with WATAF and in collaboration with the Economic Community of West African States (ECOWAS), with a focus on strengthening regional cooperation and knowledge sharing among tax authorities.
Executive Secretary of WATAF, Jules Tapsoba, described the programme as a major milestone for tax administration reform across the region, noting that it represents the first region-wide tax administration initiative financed by the AfDB.
“This project marks a significant step in strengthening institutional capacity among tax authorities in West Africa,” Tapsoba said.
He explained that the programme would promote collaboration among tax administrations while supporting the adoption of modern technologies designed to improve tax compliance and enforcement.
The project will directly support tax administrations in six West African countries: Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone.
Under the initiative, governments will receive technical assistance to modernise tax and customs administration systems, strengthen oversight of revenues generated from natural resources, and improve transparency in public revenue management.
Digital tools and data-driven systems will also be introduced to improve tax collection efficiency, reduce illicit financial flows, and limit revenue leakages that have historically weakened public finances across the region.
Funding for the programme will be provided through the African Development Fund, the concessional lending arm of the AfDB Group, under its Transition Support Facility.
