Experts from the West African Tax Administration Forum (WATAF) and Tax Justice Network Africa (TJNA) have revealed that African countries lose an estimated $89 billion annually through illicit financial flows (IFFs), largely driven by harmful tax practices.
The disclosure was made on Thursday during an interactive session with ECOWAS parliamentarians at the ongoing 2026 First Ordinary Session in Abuja. Discussions focused on strategies for operationalising ECOWAS tax directives to improve domestic resource mobilisation and regional tax harmonisation.
According to the experts, Africa’s annual domestic resource mobilisation deficit stands at about $194 billion, with tax evasion, tax avoidance, tax misinvoicing, and other exploitative practices identified as major contributors to the losses.
They noted that nearly 65 per cent of illicit financial flows in Africa are commercially driven, depriving governments of critical resources needed for infrastructure, social services, and economic development.
The experts stressed that tax harmonisation across the ECOWAS region could strengthen regional integration, curb loopholes, reduce smuggling and profit shifting, and improve revenue generation.
Research Manager at WATAF, Nita Belemaobgo, said the organisation aimed to support ECOWAS in implementing tax directives designed to align fiscal policies among member states, adding that evidence-based reforms and regional collaboration were essential for accountability.
WATAF’s Communications and IT Manager, Danicius Sengbeh, highlighted the role of the ECOWAS Parliament in overseeing tax administration and ensuring fairness and transparency within the region’s tax systems.
Also speaking, Dr Zandile Ndebele of TJNA urged lawmakers to enact legislation that would guarantee local citizens benefit directly from domestic resource mobilisation, including laws promoting local beneficiation of natural resources.
TJNA representative Solomon Adoga further called for stronger legislation in the mining sector, urging governments to review tax incentives, scrutinise mining agreements, and protect Africa’s taxing rights.
The experts maintained that tackling illicit financial flows does not require a single regional currency, noting that ECOWAS countries could still cooperate effectively despite operating different currencies.
They also encouraged member states to prioritise tax transparency, information sharing, and global tax reforms, while commending countries like Nigeria, Ghana, and Ivory Coast for advocating fair tax rights allocation.
WATAF official Jonas Igwe added that successful tax harmonisation would depend on political will, institutional coordination, digital reforms, and continuous regional cooperation.
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