By Melvin Tejan Mansaray, Abuja Nigeria
Technical Partners from the West African Tax Administration Forum (WATAF) in collaboration with Tax Justice Network Africa (TJNA) on Monday 11th May, 2026 held an interactive sitting with Lawmakers of the Economic Community of West African States (ECOWAS) Parliament to highlight the problems of Illicit Financial Flows (IFFs) and recommend ways to tackle it.
The interaction was held during the Sixth Legislature’s 2026 First Ordinary Session taking place at the International Conference Center, Area 10 Abuja Nigeria.
The Expert briefing and dialogue featured statements from the presiding Speaker, Hon. Billay G. Tunkara, Fourth Deputy Speaker of the ECOWAS Parliament who explained that WATAF was established through the adoption of an Agreement by the General Assembly of member states to contribute to the efficacy of tax administration and improved public service delivery in support of the development of countries in West Africa.
Danicius Kaihenneh Sengbeh, Communications and IT Manager WATAF on behalf of the Executive Secretary, Jules Tapsoba explained the context of setting regional tax harmonization and domestic resource mobilization.
He noted that the engagement is about “sovereignty, fairness, accountability and the future of West Africa,” underscoring that the Legislators have as indispensable role in the oversight of tax administration.
Dr. Nita Sidnoma Belemaobgo, WATAF Research Manager gave an overview on the objective and expected outcomes, which she said is to support the transition of ECOWAS on tax directives aiming at harmonizing fiscal policies across member states.
A situational analysis on addressing tax-related IFFs and promoting domestic resource mobilization in ECOWAS revealed that the AU/UNECA High-level Panel Report on IFFs showed that:
“Africa has a prevalent problem of IFF, estimating that Africa is losing around fifty billion United States dollars.”
It noted that:
“At least, 65% of these IFFs could be categorized as commercially driven IFFs, meaning that the main practices that could lead to IFFs were; tax evasion, tax avoidance, tax misinvoicing and other harmful tax practices.”
A UNECA report in 2020 haemorrhaged the available resources that can be used for development of the continent.
“Africa loses up to eighty-nine billion United States dollars due to IFFs annually.
The extractive sector is perhaps one of the most vulnerable to IFFs, losing up to forty billion United States dollars on an annual basis.”
The publication highlighted that emerging evidence shows that Africa’s persistent domestic resource mobilization gap is estimated at one hundred and ninety-four billion United States dollars annually.
The Experts agreed that addressing IFFs is central to improving domestic resource mobilization in the region.
” Regional cooperation and evidence-based tools can significantly enhance accountability and reform outcomes,” the Experts maintained, adding that:
” ECOWAS aims to extend harmonization across the broader region to reduce tax distortions, limit harmful tax competition, and strengthen regional economic integration.”
The Session witnessed presentations on ‘Operationalizing ECOWAS Tax Directives for Domestic Resource Mobilization and Regional Tax Harmonization’ – VAT harmonization, Excise Duties, Transparency Framework, Digital Taxation, Transfer Pricing and cross-border cooperation by WATAF Expert, Prof. Jonathan Aremu.
Another presentation, ‘Addressing Tax-Related IFFs through Legislative Frameworks and Transparency,’ zeroed on Anti-IFFs Policy Tracker, Beneficial Ownership, Exchange of Information, Tax Transparency and Accountability Mechanisms delivered by Dr. Zandile Ndebele of TJNA and International Financial Architecture.
The third presentation was delivered on Fiscal Governance, Extractive Taxation and Financing Sustainable Development in ECOWAS, featuring Fiscal Governance, Revenue Administration, Domestic Resource Mobilization and Just Energy Transition Financing, which was delivered by Prof. Jonathan Aremu and Solomon Adoga of TJNA.
Following their presentations, ECOWAS Lawmakers used the platform to ask critical questions on the way forward.
Hon. Minirr Ahmed thank and appreciated the presenters and asked what role can cross border trading play in the IFFs and the necessary steps needed to curb it.
Hon. Abdulai Keitta praised the quality of the presentations an enquired about how the fight against IFFs can succeed when ECOWAS does not have a single currency.
Another, MP asked for clarity on the mixed tax administration system as used in Guinea, Bissau.
Hon. Momodu expressed concern about Africa still being underdeveloped despite having huge resources, noting that when US President Donald Trump turned off the tap on food, education and health support, it seriously affected the continent. He urged African countries to stop accepting grants and loans from foreign partners.
Hon. Saa Emerson Lamina pointed out that the mining sector is a safe haven for IFFs that secure concessions but operate as a smoke screen for IFFs activities. He noted the absence of mentioning the use of AI for transparent recording keeping and tracking to detect underpricing.
Hon. Fatmata stressed that the fight against IFFs is important as corruption and money laundering is depriving the people’s of Africa. She asked the Experts what innovative mechanisms that can help domestic revenue mobilization and reduce IFFs.
Another Lawmaker, countered the cost on what is expended on health versus what is derived from tobacco and alcohol taxation, asking if the Experts do not think that more taxation should be levied on these products. The MP bemoans the short-sightedness of celebrating donor assistance when the continent is rich in raw resources.
In response, the Experts said that IFFs can be tackled even in the absence of a single currency.
“We can still have different currencies and at the same time fight IFFs.”
On what innovative mechanisms to be applied, the Expert stressed the need for information sharing, tracking of IFFs and improved tax system. They advised that in order not to be dependent on an unreliable United States under Trump, Lawmakers are to focus on domestic resource management especially of the continent’s mineral wealth.
“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. It’s important that Africa protects it’s 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.”
The Experts called on the Lawmakers to prioritize global tax reforms, information sharing, and tax transparency.
They urged other countries to join Nigeria, Ghana and Ivory Coast to be more vocal on fair allocation of taxing rights.
They recommend that the informal sector must not be left out but this they say, begins with trust-building especially when services are delivered with taxes of the informal sector.
The IFFs Experts said Artificial Intelligence (AI) can help but with reliable data.
They also explained the two different types of mixed excise tax which is a 0.2% and a minimum of 50%.
They cited the nexus between IFFs and mining comoranies noting that although corruption is a major contributing factor, countries losses more on Illicit trade contracts.
The Experts urged Lawmakers to look at the issue of IFFs holistically.
The presiding Speaker thanked the presenters and urged member states to ratify and domestic laws that are prohibiting IFFs.
He called for greater integration in West Africa and the mobilization of resources instead of being donor dependent as a sub Region and continent. Mr. Speaker concluded by saying that:
” This discussion has been qualitative.”