‘Unreliable Tax Policies, Double VAT Undermining AfCFTA In West Africa’ (NTN Update 935)

‘Unreliable Tax Policies, Double VAT Undermining AfCFTA In West Africa’ has attracted attention in Nigeria, with key details from the report. LAGOS – Experts have warned that inconsistent tax laws and poor harmonisation of fiscal policies across West Africa are creating non-tariff barriers that threaten the success of the African Continental Free Trade Area, slow down intra-regional trade and encourage smuggling across borders. During a panel session, themed, Opportunities and Challenges for Intra-Community Trade, at the ECOWAS Parliamentary Seminar and First Extraordinary Session of 2026, in Abuja, tax administrators, trade officials and business leaders, stated that unless tax systems are aligned across member states, intra-regional trade will remain slow and costly despite tariff reductions. Azibator Deborah Obudah, Finance Manager, Coordinator of Committees and Networks, West African Tax Administration Forum, stated many of the barriers traders face today are rooted in inconsistent tax frameworks. According to her, even if tariffs are reduced to zero under AfCFTA, trade would remain difficult without tax harmonisation. Obudah, warned of the growing risk of double taxation, particularly on Value Added Tax. He said: “Many of the non-tariff barriers traders are facing today are not created by tariffs. They are created by inconsistencies in our tax laws and procedures. “If taxes and tax policies are not harmonised, there is no way we will have reduction in tax barriers. If AfCFTA reduces tariffs up to like zero, trade will continue to be slow, trade will be cost effective, and there will still be inconsistencies. “If VAT is treated differently from one country to another, then there will be room for double taxation. Your tax for export and also tax for import,” she said. She also pointed to disparities in excise duties across member states, noting that such gaps encourage smuggling and informal trade. “When excise taxes vary widely across the various member states, this can incentivize smuggling. A businessman will want to buy in a country where the price is low and move it to another country where he can sell at a higher price.” Beyond taxation, she identified documentation inconsistencies and delays in VAT refunds as major burdens on businesses. “Most times there is this inconsistency. If we don’t have a better way of harmonising these things together, there is no way we can reduce non-tariff barriers.” • Analysts Fret Over New Naira Notes, Say Revenue Targets At Risk • SiBAN Sets For Inaugural Maiden P2P Conference, Picks August 6 • ‘FG’s Plan To Attain 95% Digital Literacy By 2030 On Course’ • OPS Chairman, Oye, Calls For United Private Sector To Drive Sustainable Economic Devt • PenCom Commences 2023 Online Enrolment Exercise From Next Month • Agric Innovation, Technology Critical To Poverty Reduction In Developing Countries – World Bank Observers say the development will be watched closely in the coming days.