Key points

• AfDB approves $5.52m grant to strengthen tax systems across Nigeria and West Africa

• Six West African countries receive technical support to modernise tax and customs administration

• Project deploys digital tools to curb leakages and improve revenue transparency

The African Development Bank Group has approved a $5.52 million grant to strengthen tax administration and improve domestic revenue mobilisation in Nigeria and across West Africa.

The bank said the funding, signed with the West African Tax Administration Forum, will support efforts to modernise tax systems, improve governance and increase revenue collection in participating countries.

Programme to support six countries

The initiative launches the Strengthening Tax Administration Capacity Project in West Africa, a regional programme designed to help governments better mobilise and manage domestic revenues.

Six countries. Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia and Sierra Leone. They will receive technical support to upgrade tax and customs administration systems.

The programme also focuses on improving oversight of natural resource revenues, an area long affected by weak monitoring and losses.

Digital tools to curb leakages

Digital tools will play a central role. The bank said modern tax management systems will be deployed to improve transparency and accountability, while helping governments track and reduce revenue losses.

Abdul B. Kamara, the bank’s Director General for Nigeria, said the project will improve efficiency in revenue collection and strengthen oversight of both domestic taxes and extractive sector revenues.

Regional cooperation at the centre

Jules Tapsoba, executive secretary of WATAF, described the project as a major step for regional cooperation on tax matters.

He said it marks the first region-wide tax administration programme financed by the AfDB and will help countries share best practices and adopt more effective approaches.

The bank added that the initiative will deepen collaboration between WATAF and the Economic Community of West African States, strengthening regional integration in tax governance.

Nigeria reforms align with initiative

The project is scheduled to run until July 2030, with a steering committee overseeing implementation and a dedicated unit within WATAF handling coordination.

The move comes as many African governments face pressure to raise domestic revenue amid rising debt and tighter global financial conditions.

In Nigeria, the effort aligns with recent tax reforms signed into law by President Bola Tinubu, which took effect in January 2026.

Analysts say combining national reforms with regional support could lead to higher revenues, improved transparency and a stronger fiscal position across West Africa.