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It was an atmosphere of joyful noise as Staff of Abdul Val Construction Company, an indigenous contractor handling the ongoing construction of Karu, Abuja roads hailing the FCT Minister, Nyesom Wike, while inspecting the road project today.

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By Gloria Ikibah

African economies continue to suffer major revenue losses due to illicit financial flows, with experts estimating that as much as 89 billion dollars slips out of the continent annually.

Specialists from the West African Tax Administration Forum WATAF and Tax Justice Network Africa TJNA highlighted the scale of the challenge during an engagement with lawmakers at the ongoing 2026 First Ordinary session of the Economic Community of West African States Parliament in Abuja on Monday.

They linked the persistent losses to a range of harmful tax practices that continue to undermine public finances across the region. These include tax evasion, aggressive tax avoidance and the manipulation of trade invoices, all of which weaken governments’ ability to generate revenue.

Discussions at the session also focused on how to implement regional tax directives more effectively, with particular emphasis on strengthening domestic resource mobilisation and promoting greater alignment of tax systems across West Africa.

According to the experts, the continent is grappling with a substantial funding gap, with nearly 194 billion dollars needed each year to meet development demands, a shortfall made worse by ongoing financial leakages.

“Africa has a prevalent problem of illicit financial flows, and at least 65 per cent of these could be categorised as commercially-driven.

“The main practices that could lead to IFFs are: tax evasion, tax avoidance, tax misinvoicing and other harmful tax practices.

“These harmful tax practices haemorrhage the available resources that can be used for development of the continent, and Africa loses up to eighty-nine billion dollars annually,” they said, citing a 2020 report.

They also asserted that advancing tax harmonisation within the ECOWAS sub-region presents a strategic opportunity for WATAF to strengthen regional integration, enhance domestic resource mobilisation, and support sustainable development.

“Tax harmonisation is the fiscal backbone of ECOWAS integration. Without it, the region will continue to lose revenue through loopholes, smuggling, opacity, and profit shifting,” they said.

However, they emphasised that the effectiveness of such efforts would depend on strong political commitment, effective national-level implementation, and active parliamentary oversight.

Dr Nita Belemaobgo, Research Manager, WATAF, while highlighting the session’s expected outcomes, said the organisation’s objective was to support ECOWAS’ transition on tax directives aimed at harmonising fiscal policies across member states.

“Regional cooperation and evidence-based tools can significantly enhance accountability and reform outcomes,” she said.

Danicius Sengbeh, WATAF’s Manager, Communications and Information Technology, underscored the importance of setting regional tax harmonisation and domestic resource mobilisation.

He said the ECOWAS Parliament had an indispensable role to play in the oversight function of tax administration, adding that the engagement was about “sovereignty, fairness, accountability and West Africa’s future.”

Dr Zandile Ndebele of TJNA, in her submission, urged the regional MPs to make laws to ensure that local citizens in African countries benefited from domestic resource mobilisation and management.

Speaking on the theme, “Addressing Tax-Related Illicit Financial Flows (IFFs) through Legislative Frameworks and Transparency,” she said:

“It’s possible to introduce legislation for domestic beneficiation to gain more resources and revenues, apart from gaining from just taxes.”

The experts urged lawmakers to adopt a broad and coordinated approach to tackling illicit financial flows, noting that meaningful progress in this area would be critical to strengthening both national and regional revenue generation.

Speaking on behalf of the Tax Justice Network Africa, Solomon Adoga called on parliamentarians to prioritise stronger legal frameworks for the mining sector, emphasising the need for stricter oversight and accountability.

He advised legislators to focus on “strengthening extractive legislation, scrutinising new mining agreements and monitoring tax incentives through cost-benefit analysis.”

He also stressed the importance of safeguarding the continent’s fiscal interests, warning against continued dependence on external systems.

“It’s important that Africa protects its taxing rights. We must look at where we are losing revenue as Africans. We don’t need to be reliant on other countries outside of Africa,” he said.

The experts further encouraged the Economic Community of West African States to deepen tax harmonisation efforts across the region as a way of reducing distortions, curbing unhealthy tax competition and reinforcing economic integration.

They pointed out that progress in tackling illicit financial flows does not necessarily depend on a unified currency, maintaining that countries can retain separate monetary systems while still working together to address the problem.

“There must be local beneficiation in our countries. Africa has been deprived of taxing rights. Multinational companies are not paying their fair share of taxation,” they noted.

In addition, lawmakers were urged to give priority to global tax reforms, improved information exchange and greater transparency, while encouraging member states to draw lessons from advocacy efforts in countries such as Nigeria, Ghana and Côte d’Ivoire.

A representative of the West African Tax Administration Forum, Jonas Igwe, highlighted the need for sustained commitment to make regional reforms effective.

“Effective implementation of tax harmonisation would require political commitment, institutional coordination, digital modernisation, sustained regional cooperation, monitoring and evaluation by national transition committees,” he added.

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By Gloria Ikibah

The Economic Community of West African States has introduced an extensive roadmap aimed at overhauling regional integration, as it seeks to rebuild confidence, restore cohesion and respond more effectively to growing political, economic and security pressures across West Africa.

The proposal, unveiled during a session of the ECOWAS Parliament in Abuja on Tuesday, was presented by the organisation’s Commissioner for Political Affairs, Peace and Security, Ambassador Abdel-Fatau Musah. It outlines a broad reset of the bloc’s direction, with a renewed focus on making integration more inclusive and people-centred.

At the core of the initiative is the implementation of the ECOWAS Vision 2050 framework, alongside efforts to reposition the organisation at a time when it faces one of its most challenging periods since its establishment in 1975. Ongoing governance concerns, democratic backsliding and the rise of alternative alliances such as the Alliance of Sahel States, involving Burkina Faso, Mali and Niger, have all contributed to the strain.

The reform plan stems from a directive issued by regional leaders during their 65th Ordinary Session in Abuja in July 2024, which called for a dedicated summit to reassess the future of integration in West Africa.

Structured around six key pillars, the framework sets out priorities including economic transformation, peace and democratic governance, advances in science and technology, social inclusion, institutional reform and a clearer geopolitical strategy for the bloc.

On the economic front, the organisation is targeting a significant increase in intra-regional trade, with ambitions to deepen industrialisation, strengthen food security and introduce a single regional currency, the ECO, in the coming years.

Security and governance proposals emphasise stricter opposition to unconstitutional changes of government, alongside plans to reinforce regional peacekeeping capacity through a stronger standby force.

In the technology space, the roadmap envisions the creation of a unified digital market, while social measures include increasing women’s representation in leadership roles and embedding youth participation in governance structures.

Institutional reforms are also central to the plan, with proposals aimed at improving accountability, strengthening merit-based systems and achieving financial independence for ECOWAS institutions through enhanced revenue mechanisms.

A major feature of the document is its emphasis on “strategic autonomy,” positioning ECOWAS as a unified geopolitical actor capable of defending West Africa’s sovereignty in an increasingly multipolar world.

The proposal further outlines a framework for structured dialogue and confidence-building measures with the AES countries to prevent permanent fragmentation of the region.

To address ECOWAS’ longstanding implementation deficit, the Compact introduces a robust monitoring and evaluation system, including compliance scorecards for member states and an evidence-based approach to policy implementation.

Musah said the ultimate goal is to transform ECOWAS from an institution known for issuing declarations into one that delivers concrete public goods such as security, economic mobility and digital connectivity to citizens.

He noted that the draft Compact was developed through extensive consultations involving citizens across West Africa, civil society groups, the African diaspora, ECOWAS institutions and heads of state and government.

“The Compact for the Future of Regional Integration is a survival strategy for the region,” Musah said. “It seeks to rebuild trust between states and their peoples, ensuring that regional integration remains relevant, citizen-centred and capable of responding to 21st-century challenges.”

The presentation formed part of deliberations at the ongoing ECOWAS Parliament session, where lawmakers are examining the future of regional cooperation amid rising insecurity, democratic instability and economic pressures across West Africa.