The African Development Bank Group (AfDB) has approved a $5.52 million grant aimed at strengthening tax administration and boosting domestic revenue mobilisation in Nigeria and other West African countries.

According to the bank, the funding will support reforms designed to improve tax systems, enhance compliance, and increase government revenue across the region. The initiative is also expected to help participating countries reduce reliance on external borrowing by improving internally generated revenue.

AfDB officials stated that the grant will be used to build institutional capacity, deploy modern tax technologies, and train personnel involved in revenue collection and administration.

The programme will also focus on improving transparency and efficiency within tax systems, ensuring that governments are better equipped to track and collect taxes in line with global best practices.

Experts say the intervention could play a key role in strengthening fiscal stability across West Africa, especially at a time when many countries are facing economic pressures and rising public expenditure demands.

The bank reaffirmed its commitment to supporting economic development and governance reforms in the region, noting that stronger tax systems are critical to sustainable growth.

Further details on the implementation timeline and participating countries are expected to be released as the programme progresses.