The African Development Bank (AfDB) says Africa could generate more than $469bn in additional annual revenue without increasing statutory tax rates, highlighting significant untapped fiscal potential across the continent. The projection was disclosed by AfDB Chief Economist and Vice President for Economic Governance and Knowledge Management, Prof Kevin Urama, in an interview with the News Agency of Nigeria News Agency of Nigeria in Abuja.
Urama said the key to unlocking the revenue lies in stronger domestic resource mobilisation, particularly through improved tax administration, digitalisation, and institutional reforms. He noted that efficiency-driven reforms, rather than tax hikes, would significantly boost compliance and broaden the revenue base across African economies.
He also stressed that citizens are more likely to comply with tax obligations when governments deliver quality public services such as electricity, water, and infrastructure. The AfDB is supporting countries, including Nigeria, through capacity building for revenue authorities and the introduction of a Public Service Delivery Index aimed at improving governance, transparency, and fiscal accountability.
