The African Development Bank Group has approved a $5.52 million grant to the West African Tax Administration Forum (WATAF) to strengthen tax administration systems and support domestic revenue mobilisation across six West African countries.

The funding, provided through the African Development Fund (ADF), will finance the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), a regional initiative aimed at improving the ability of governments to mobilise, manage and safeguard domestic revenues.

The agreement was signed by the Bank Group’s Director General for Nigeria, Abdul B. Kamara, and WATAF’s Executive Secretary, Jules Tapsoba, in Abuja.

The project is designed to modernise tax and customs administration, strengthen oversight of natural resource revenues and equip tax authorities with tools to reduce leakages and curb illicit financial flows.

It will also combine analytical work, technical assistance, digital innovation and policy dialogue to help participating countries align their revenue systems with regional directives and international standards.

According to the bank, the initiative will deliver several regional public goods, including an electronic invoicing toolkit, training modules aligned with the African Continental Free Trade Area (AfCFTA), enhanced transfer pricing assessment tools for oversight in the extractive sector, and a platform to support young tax researchers in West Africa.

Targeted technical assistance will also be provided in selected countries to support value-added tax (VAT) implementation, customs valuation reforms, mining sector governance and gender-responsive tax policy.

Primary beneficiaries of the project include tax authorities in Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia and Sierra Leone, while the Economic Community of West African States (ECOWAS) will benefit from the regional tools, platforms and knowledge products generated under the initiative.

WATAF will serve as the executing agency, while ECOWAS and the Nigeria Revenue Service are expected to collaborate with the forum in providing technical support for the project’s implementation.

Speaking at the signing ceremony, Kamara said strengthening tax administration is crucial for expanding fiscal space and enabling countries to finance their development priorities.

“Strengthening tax administration is essential for creating the fiscal space that will enable countries to finance their development priorities. The Bank is pleased to support WATAF to advance regional reforms that enhance efficiency, curb leakages and promote governance in both domestic taxation and the extractive sectors,” he said.

He added that the partnership would deliver long-term benefits for regional stability and economic transformation in West Africa.

Also speaking, Tapsoba described the initiative as a milestone for the organisation and the region.

“This marks the first time WATAF is implementing a region-wide tax administration project financed by the African Development Bank Group, and it represents a significant milestone for our institution and for West Africa,” he said.

He noted that the project would help member countries strengthen domestic revenue systems, reduce leakages and improve revenue mobilisation, adding that the collaboration marks a new phase of coordinated tax administration support across the region.