The African Development Bank (AfDB) Group has approved a $5.52 million grant to strengthen tax administration and improve domestic revenue mobilization in Nigeria and other West African countries.
The development was disclosed in a statement published by the AfDB Group over the weekend, announcing the signing of the grant agreement between the bank and the West African Tax Administration Forum (WATAF).
The initiative is expected to help participating countries modernize tax administration, strengthen governance systems, and improve revenue collection to support development priorities across the region.
The African Development Bank said strengthening tax administration remains critical for West African countries seeking to increase domestic revenue and reduce dependence on external borrowing. The bank noted that stronger tax systems will create the fiscal space needed for governments to finance development priorities.
“Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa,” said Abdul B. Kamara, Director General of the AfDB Group for Nigeria.
“The project will help governments enhance efficiency in revenue collection, curb leakages, and strengthen governance in both domestic taxation and the management of extractive sector revenues,” he added.
Jules Tapsoba, Executive Secretary of WATAF, described the initiative as “a major milestone,” noting that it represents the first region-wide tax administration project financed by the AfDB Group.
The AfDB added that the project will also encourage regional collaboration among tax authorities through WATAF and the Economic Community of West African States (ECOWAS).
