The African Development Bank Group has approved a $5.52 million grant to strengthen tax administration and boost domestic revenue mobilization in Nigeria and other West African countries.

The announcement was made in a weekend statement confirming the signing of a grant agreement between the bank and the West African Tax Administration Forum.

The initiative aims to help participating countries modernize tax systems, improve governance, and enhance revenue collection to support development priorities across the region.

The AfDB said strengthening tax administration is critical for West African countries seeking to boost domestic revenue and reduce reliance on external borrowing.

The bank added that stronger tax systems would create the fiscal space needed for governments to finance key development priorities.

 

The Director General of the AfDB Group for Nigeria, Abdul B. Kamara, said, “Strengthening tax administration is essential for creating the fiscal space needed to support economic development across West Africa.

“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.”

Executive Secretary of the West African Tax Administration Forum, Jules Tapsoba, described the initiative as “a major milestone,” noting that it is the first region-wide tax administration project financed by the AfB Group.

AfDB said the project will also strengthen regional cooperation among tax authorities through the West African Tax Administration Forum and the Economic Community of West African States.

The grant agreement launches the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), which aims to enhance governments’ ability to mobilize, manage, and protect domestic revenues.

Funding for the program will come from the African Development Fund through its Transition Support Facility.

The project will support tax administrations in six West African countries: Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone.

Participating governments will receive technical support to modernize tax and customs administration.