West Africa Tax Authorities Turn to Digital Tools to Boost VAT Collection

ABUJA, Nigeria,— Nearly 400 tax officials and revenue experts from 16 countries have gathered in Abuja to explore how digital technology can improve Value Added Tax administration and strengthen domestic revenue collection across West Africa.

The high-level regional workshop, organized by the West African Tax Administration Forum (WATAF), brought together representatives of tax administrations, government institutions, customs, auditing, tax policy, information technology and taxpayer services.

Held on August 6 under the theme, “Strengthening VAT Management in West Africa: Leveraging Digital Innovation for Sustainable Domestic Revenue Mobilisation,” the meeting focused on practical ways countries can modernize VAT systems while responding to growing compliance challenges and the expansion of the digital economy.

More than 96 percent of the participants came from 12 West African countries, while officials and technical experts from four countries outside the region joined as observers and resource persons.

Opening the workshop, WATAF Executive Secretary Jules Tapsoba said stronger VAT systems are critical to helping West African countries generate the domestic resources needed to finance development.

Mr. Tapsoba said tax and customs authorities must adapt to challenges created by the region’s large informal economy, cross-border trade, weak compliance and the rapid growth of digital businesses.

He said WATAF remains committed to helping member states strengthen their tax administrations through technical cooperation, capacity building and the exchange of regional experiences.

WATAF Training and Capacity Development Manager Usman Ibrahim said the modernization of VAT should not be viewed simply as a strategy for collecting more money from taxpayers.

According to him, digital systems can help tax authorities better understand economic activity and improve the entire VAT process — from taxpayer registration and invoicing to filing, payment, auditing, refunds and risk management.

Participants examined a range of digital tools and reform measures, including electronic filing, electronic payments, electronic invoicing, real-time reporting, digital payment records, data analytics and invoice verification.

The discussions also addressed taxpayer education and the challenge of bringing more businesses, particularly those operating informally, into the formal economy.

Representing the African Tax Administration Forum (ATAF), Emeka Nwanko said VAT contributes about 30 percent of total tax revenue in the region but remains below its potential.

He linked the gap to low taxpayer registration, weak compliance and the size of the informal economy, which he said accounts for about 40 percent of regional GDP and 83 percent of Africa’s workforce.

Mr. Nwanko said governments will need to combine technology with stronger taxpayer registration, improved communication and new approaches to capturing economic activity in the digital sector.

He noted that many informal businesses continue to operate largely through cash transactions and maintain limited financial records, making them difficult to capture within conventional tax systems.

Participants also exchanged experiences from their respective countries on VAT automation, compliance management and institutional reforms, with the aim of identifying approaches that could be adapted to different national settings.

Benin recorded the largest representation at the workshop with 193 participants, followed by Nigeria with 104. Liberia sent 28 participants, while Burkina Faso was represented by 23.

Other participating countries included Cabo Verde, Côte d’Ivoire, Ghana, Guinea, Guinea-Bissau, Senegal, Sierra Leone and Togo, alongside Canada, Namibia, Portugal and South Africa.

More than 80 percent of those attending were directly involved in tax and revenue administration, leadership, auditing, compliance, tax policy, reform, taxpayer services, or customs and excise.

Technical presentations were delivered by officials and experts including Oluwole Oni of the Nigeria Revenue Service, WATAF Executive Secretary Jules Tapsoba, ATAF representative Emeka Nwanko and digital solutions specialists from AFRITAX/BYC and Yaaba.

The Abuja meeting forms part of WATAF’s broader efforts to strengthen tax administration across the region, promote cooperation among member states and help governments improve domestic revenue collection through technology and institutional reform.