Nigeria Urged to Accelerate Digital VAT Reforms as West Africa Targets Revenue Growth. Nigeria has been urged to fast-track the digital transformation of its Value Added Tax (VAT) system as part of a broader regional push to strengthen revenue collection and improve tax compliance across West Africa.
The call was made by the West African Tax Administration Forum (WATAF) during a high-level meeting held on April 21, 2026, in Abidjan, Côte d’Ivoire.
The forum, convened with support from the African Development Bank (AfDB), brought together tax administrators, policymakers, and development partners to examine reforms needed to modernise VAT systems in the region.
Digital VAT No Longer Optional
According to WATAF’s Executive Secretary, Jules Tapsoba, the adoption of digital tools is now critical for improving VAT administration.
He reportedly stated that reliance on manual and outdated tax processes continues to create loopholes, enabling revenue leakages and weakening enforcement capacity.
Digital systems, he noted, offer governments better visibility into transactions, improved compliance monitoring, and more efficient tax collection mechanisms.
Implications for Nigeria’s Tax System
For Nigeria, where VAT remains a key component of non-oil revenue, the message is particularly significant.
Tax experts note that while the country has made progress through platforms such as electronic filing and digital tax systems, gaps still exist in areas such as real-time data integration, invoice verification, and refund processing.
The push for reform aligns with Nigeria’s ongoing efforts to modernise its tax administration and improve domestic revenue mobilisation amid fiscal pressures.
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Key Challenges Limiting VAT Performance
WATAF highlighted several structural issues affecting VAT performance across West Africa, many of which are also relevant to Nigeria.
These include:
- A large informal sector limiting tax coverage
- Weak compliance culture among taxpayers
- Inadequate digital infrastructure
- Poor coordination between customs and tax authorities
These challenges, according to stakeholders, contribute to revenue losses, delays in VAT refunds, and increased financial strain on businesses.
Need for Faster VAT Refund Systems
One of the major concerns raised at the meeting was the slow processing of VAT refunds.
Businesses often rely on timely refunds to maintain liquidity, and delays can disrupt operations and discourage compliance.
WATAF therefore emphasised the need for more transparent, automated, and efficient refund systems—an area where digitalisation could play a transformative role.
Regional Push for Harmonisation
The forum also urged member countries, including Nigeria, to implement the VAT harmonisation framework approved by the Economic Community of West African States (ECOWAS) in July 2023.
The framework sets a January 2027 deadline for aligning VAT rules across the region, with the goal of improving cross-border trade, ensuring fair competition, and strengthening economic integration.
Experts say combining harmonised tax rules with digital systems would make compliance easier for businesses operating across multiple jurisdictions.
Lessons from Other Regions
Speaking at the event, Eline Okudzeto noted that experiences from East Africa show digital tax reforms can significantly improve revenue performance.
However, she reportedly emphasised that technology alone is not sufficient, highlighting the importance of institutional coordination, policy consistency, and strong implementation frameworks.
Broader Stakeholder Contributions
Other contributors, including representatives from the African Tax Administration Forum (ATAF) and ECOWAS, reinforced the need for stronger VAT systems as a foundation for domestic revenue growth.
They also called for improved audit processes, better customs valuation systems, and closer collaboration between tax and customs authorities.
Capacity Building and Public Awareness
WATAF further stressed the importance of investing in data systems and training tax officials to manage digital platforms effectively.
In addition, the forum highlighted the need to improve taxpayer education and awareness to drive voluntary compliance.
What This Means for Nigeria
As Nigeria continues to reposition its tax system for efficiency and sustainability, the push for digital VAT reform presents both an opportunity and a necessity.
A fully digitised VAT system could help the country:
- Reduce revenue leakages
- Improve compliance rates
- Enhance transparency in tax administration
- Support businesses through faster refund processes
Looking Ahead
With the 2027 ECOWAS harmonisation deadline approaching, Nigeria and other West African countries face increasing pressure to modernise their VAT systems.
Analysts believe that timely implementation of digital reforms will be critical in strengthening fiscal resilience, especially as governments shift focus from border taxes to domestic revenue sources.
