Connect with us

Business

West Africa Faces Revenue Loss Without VAT Digitalisation — WATAF

Published

on

West Africa

VAT digitalisation West Africa is urged by WATAF to boost revenue, reduce leakages and improve tax efficiency across ECOWAS economies

adron lemon friday

The West African Tax Administration Forum (WATAF), a regional body focused on tax policy coordination, on Wednesday, April 23, 2026, called for accelerated digitalisation of Value Added Tax systems across West Africa, warning that outdated processes are undermining revenue mobilisation and slowing economic growth.

Also read: Tinubu felicitates Elumelu on birthday, hails Africapitalism Drive

The call was made during a high-level regional forum in Abidjan, Côte d’Ivoire, organised by the African Development Bank, bringing together tax administrators, policymakers and development partners to assess ongoing reforms in VAT administration across the continent.

Speaking during a panel discussion on VAT reform, WATAF Executive Secretary Jules Tapsoba stressed that the VAT digitalisation West Africa agenda is critical for improving efficiency, reducing leakages and strengthening compliance across member states.

Tapsoba said digital transformation remains the most powerful tool for improving VAT performance in the region, cautioning that failure to adopt modern systems would continue to result in inefficiencies and lost revenue.

He highlighted structural challenges affecting VAT collection, including a large informal sector, weak tax compliance culture, limited digital infrastructure and poor coordination between customs and domestic tax authorities.

According to him, these weaknesses have contributed to delayed VAT refunds, revenue leakages and reduced liquidity for businesses operating within the region.

Despite ongoing reforms such as electronic invoicing, online taxpayer registration and automated filing systems in several countries, Tapsoba noted that implementation remains uneven and fragmented across West Africa.

He urged member states to align their national VAT systems with the ECOWAS VAT harmonisation directive adopted in 2023, ahead of the 2027 compliance deadline, stressing that coordination is essential for building a unified regional market.

Also speaking at the forum, AfDB governance official Eline Okudzeto highlighted progress made in other African regions while noting persistent challenges in system integration and enforcement.

Other stakeholders from regional tax bodies and ECOWAS reinforced the importance of VAT as a key domestic revenue source, while acknowledging the difficulties in achieving full compliance.

Also read: Oando participates as Lead Sponsor of Africa Oil Week 2023

The forum concluded with a call for stronger political commitment, improved institutional coordination and faster implementation of digital tax systems to support long-term fiscal sustainability across West Africa.

65 / 100 SEO Score

Banking

Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

Published

on

Theparkpay

Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

74 / 100 SEO Score
Continue Reading

Business

Wale Tinubu Says Nigeria’s Creativity Can Drive Exports

Published

on

Wale Tinubu

Wale Tinubu says Nigeria’s creativity can become a major export industry, creating jobs, attracting foreign exchange and building sustainable businesses (more…)

63 / 100 SEO Score
Continue Reading

Business

TotalEnergies, AMNI Approve $800m Ima Gas Project

Published

on

TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.

adron lemon friday

The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.

The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.

Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.

The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.

Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.

The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.

TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.

At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.

He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.

President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.

The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.

He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.

The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.

The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.

The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.

Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.

The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.

For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.

56 / 100 SEO Score
Continue Reading

Trending News