RismadarVoice Reporters
June 4, 2026
The African Development Bank (AFDB) has revealed that African countries could mobilise more than $469 billion in additional annual revenue without increasing tax rates, through improved tax systems and stronger institutional efficiency.
This was disclosed by the AfDB’s Chief Economist and Vice President for Economic Governance and Knowledge Management, Prof. Kevin Urama, during an interview with the News Agency of Nigeria in Abuja on Wednesday.
Urama explained that the continent’s revenue potential could be significantly boosted through reforms in tax administration, particularly via digitalisation, improved compliance systems, and stronger public sector institutions.
He stressed that enhancing efficiency in revenue collection, rather than raising statutory tax rates, represents a more sustainable approach to financing development across Africa.
“We see that by improving tax administration through digitisation and other reforms, the continent can mobilise more than $469bn extra without increasing tax rates. It is simply about improving efficiency and strengthening compliance,” he said.
According to him, many citizens across African countries are reluctant to pay taxes due to poor public service delivery, as individuals are often forced to provide basic infrastructure such as electricity, water, and road access on their own.
He noted that improving governance, transparency, and accountability would encourage greater voluntary tax compliance and strengthen the relationship between governments and citizens.
Urama further stated that the AfDB is supporting countries, including Nigeria, in strengthening domestic resource mobilisation through capacity-building initiatives targeted at national revenue authorities.
He added that the bank has also introduced a Public Service Delivery Index, designed to help governments assess and improve the quality of services delivered to citizens, thereby reinforcing trust in public institutions and improving tax compliance.
