West African tax experts warned that illicit financial flows are draining roughly $89 billion from African economies each year, a loss they attribute to tax evasion, avoidance, mis‑invoicing and other harmful practices. The warning was voiced during an interactive session with ECOWAS parliamentarians at the first ordinary session of the ECOWAS Parliament in Abuja.
Representatives of the West African Tax Administration Forum (WATAF) and Tax Justice Network Africa (TJNA) said the continent’s domestic resource‑ mobilisation gap stands at about $194 billion annually. They argued that without coordinated action, the region will continue to lose revenue to loopholes, smuggling, opaque corporate structures and profit‑shifting arrangements.
“The main drivers of illicit financial flows are tax evasion, avoidance and mis‑invoicing,” the speakers noted, quoting a 2020 report that estimates Africa’s annual loss at up to $89 billion. They stressed that these losses undermine development financing and perpetuate dependence on external sources of capital.
In the same session, participants presented on operationalising ECOWAS tax directives aimed at strengthening domestic resource mobilisation and achieving regional tax harmonisation. WATAF’s research manager, Nita Belemaobgo, said the forum’s objective is to support the ECOWAS transition toward harmonised fiscal policies, arguing that regional cooperation and evidence‑based tools can improve accountability and reform outcomes.
Danicius Sengbeh, WATAF’s communications manager, highlighted the ECOWAS Parliament’s oversight role, describing the effort as essential for “sovereignty, fairness, accountability and West Africa’s future.” TJNA’s Dr Zandile Ndebele urged legislators to enact laws that ensure local beneficiaries capture a greater share of tax revenues, while colleague Solomon Adoga called for stronger extractive‑sector legislation, thorough review of mining agreements and rigorous cost‑benefit analysis of tax incentives.
The experts agreed that tax harmonisation is a cornerstone of ECOWAS integration. Without it, member states risk continued revenue leakage through harmful tax competition. They called for strong political commitment, effective national implementation, digital modernisation and sustained regional cooperation. Monitoring and evaluation by national transition committees were identified as critical to success.
While acknowledging that ECOWAS members use different currencies, the speakers insisted that the absence of a single currency does not preclude collective action against illicit flows. They pointed to the advocacy work of Nigeria, Ghana and Côte d’Ivoire as models for fair tax‑rights allocation and urged other states to follow suit.
The discussion concluded with a consensus that tackling illicit financial flows requires holistic legislative frameworks, enhanced transparency and robust information‑sharing mechanisms. If implemented, the proposed tax harmonisation could narrow the domestic resource gap, bolster fiscal resilience and support sustainable development across West Africa.
