Experts from the West African Tax Administration Forum (WATAF) and the Tax Justice Network Africa (TJNA) have reported that African countries lose approximately $89 billion annually due to illicit financial flows (IFF).

According to the News Agency of Nigeria (NAN), this statement was made during an interactive session with ECOWAS parliamentarians at the ongoing 2026 First Ordinary Session in Abuja. Presentations on topics such as “Operationalising ECOWAS Tax Directives for Domestic Resource Mobilisation and Regional Tax Harmonisation” were also featured during the session.

The experts identified the losses as stemming from harmful tax practices that negatively impact the economies of African nations. They highlighted that these harmful practices include tax evasion, tax avoidance, and tax misinvoicing.

Notably, they mentioned that Africa’s persistent domestic resource mobilisation gap amounts to around $194 billion annually.

“Africa faces a significant issue with illicit financial flows, with at least 65 percent of these flows being commercially driven,” they stated. They further explained that the primary practices contributing to IFFs are tax evasion, tax avoidance, and misinvoicing, among other harmful tax strategies. These practices severely hinder the available resources necessary for the continent’s development.

According to the experts, advancing tax harmonisation within the ECOWAS sub-region presents a strategic opportunity for WATAF to enhance regional integration, improve domestic resource mobilisation, and support sustainable development.

They stressed, “Tax harmonisation is essential for ECOWAS integration. Without it, the region will continue to lose revenue through loopholes, smuggling, opacity, and profit shifting.”

However, they emphasised that the success of these initiatives relies heavily on strong political commitment, effective implementation at the national level, and active oversight by parliaments.

Dr. Nita Belemaobgo, Research Manager at WATAF, outlined the session’s expected outcomes, stating that the organisation’s objective is to support ECOWAS in transitioning towards tax directives aimed at harmonising fiscal policies among member states.

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

Danicius Sengbeh, WATAF’s Communications and Information Technology Manager, highlighted the crucial role of the ECOWAS Parliament in overseeing tax administration.

He described the engagement as being about “sovereignty, fairness, accountability, and the future of West Africa.” Dr. Zandile Ndebele from TJNA encouraged regional MPs to enact laws that ensure local citizens benefit from domestic resource mobilisation and management.

In her presentation titled “Addressing Tax-Related Illicit Financial Flows (IFFs) through Legislative Frameworks and Transparency,” she asserted, “Legislation for domestic beneficiation can be introduced to secure more resources and revenues, beyond simply relying on tax income.”

The experts called on MPs to adopt a comprehensive approach to addressing IFFs, emphasising that tackling these issues is critical for enhancing both domestic and regional resource mobilisation.

Solomon Adoga of TJNA urged parliamentarians to pass enabling laws for the mining sector by “strengthening extractive legislation, scrutinising new mining agreements, and monitoring tax incentives through cost-benefit analysis.”

He emphasised the need for Africa to protect its taxing rights, asserting that, “We need to identify where we are losing revenue. We should not rely on countries outside Africa.”

The experts also urged ECOWAS to extend harmonisation efforts across the broader region to reduce tax distortions, mitigate harmful tax competition, and strengthen regional economic integration.

They noted that the challenges posed by IFFs can be addressed even without a single currency, as member states can still combat IFFs while using different currencies.

“There must be local beneficiation in our countries. Africa has been deprived of its taxing rights, and multinational companies are not paying their fair share of taxes,” they remarked.

They called on MPs to prioritise global tax reforms, information sharing, and tax transparency, and encouraged member states to follow the examples set by Nigeria, Ghana, and Ivory Coast in advocating for fair tax allocations.

“Effectively implementing tax harmonisation will require political commitment, institutional coordination, digital modernisation, sustained regional cooperation, and monitoring and evaluation by national transition committees,” added WATAF’s Jonas Igwe. (TRIBUNE)