Barbara Bako, Abuja.
The African Tax Administration Forum (ATAF) says audit interventions carried out across member countries generated tax assessments worth $907.8 million in 2025, with governments successfully collecting $685.8 million as African countries intensify efforts to strengthen domestic revenue mobilisation amid mounting fiscal pressures.
Details contained in ATAF’s newly released 2025 Annual Report showed that the revenue gains came from several compliance and enforcement measures, including $47.1 million realised through transfer pricing audits, $3.57 million from digital services tax, and $142.96 million from cross-border Value Added Tax compliance initiatives.
The report underscores the growing push by African governments to reduce dependence on borrowing and external financing by improving tax administration, widening the tax base and tackling tax avoidance by multinational corporations and wealthy individuals.
According to the report, ATAF provided technical assistance to 35 African countries during the year, while 2,433 tax officials from 43 countries, including Nigeria, received specialised training aimed at strengthening tax administration capacity across the continent.
ATAF noted that its interventions supported reforms in transfer pricing laws and anti-tax avoidance frameworks in several countries to ensure multinational companies pay taxes in jurisdictions where economic activities occur.
The organisation added that it also assisted tax administrations to establish dedicated transfer pricing units and exchange-of-information departments to improve monitoring of multinational firms, tackle profit shifting and curb illicit financial flows.
The report highlighted ATAF’s expanding role in global tax policy discussions, particularly on issues relating to digital taxation, tax transparency, illicit financial flows and the ongoing United Nations Framework Convention on International Tax Cooperation.
ATAF Executive Secretary, Mary Baine, said the report reflects the increasing importance of domestic resource mobilisation in Africa’s development agenda as external financing continues to decline.
“Domestic Resource Mobilisation is no longer optional for Africa; it is the foundation for sustainable development, economic resilience, and fiscal sovereignty. As external financing declines and fiscal pressures intensify, African countries must strengthen tax systems to modernise revenue administration, and build fiscally resourced states that finance development with integrity, effectiveness, and measurable results,” she said.
Baine added that ATAF would continue supporting member countries and development partners in implementing reforms capable of strengthening public finances and delivering measurable impact across the continent.
The report further disclosed that ATAF is increasing focus on emerging tax policy areas such as carbon taxation, digital economy taxation, artificial intelligence driven compliance systems and gender inclusive tax frameworks.
According to the organisation, these reforms are expected to help African governments improve revenue collection efficiency, strengthen fiscal institutions and build more resilient economies capable of addressing infrastructure gaps, unemployment and rising social demands.
ATAF also stated that efforts are ongoing to strengthen its internal governance systems, improve financial sustainability and deepen partnerships with donor agencies and development organisations to support future technical assistance and research programmes across Africa.
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