Prof. Urama emphasized that stronger domestic resource mobilization remains the most sustainable pathway for financing the continent’s development ambitions.
“We see that by improving tax administration through digitisation and other reforms, just adopting best practices, the continent can mobilise more than $469bn extra without increasing tax rates,” Prof. Urama said. “It is simply about improving efficiency and strengthening compliance.”
According to the AfDB chief economist, many African citizens are reluctant to pay taxes because they often have to provide basic services — such as electricity, water, and roads — for themselves. He stressed that governments can significantly boost voluntary tax compliance by delivering quality public services, enhancing transparency, and ensuring prudent management of public resources.
Urama highlighted that improving tax administration through digitalisation, strengthening public institutions, and enhancing service delivery would play a critical role in increasing compliance and revenue collection across the continent.
The AfDB is actively supporting African nations, including Nigeria, to strengthen domestic revenue mobilization. This support includes capacity building for national revenue authorities and the development of a Public Service Delivery Index designed to help governments improve service delivery and reinforce the social contract between citizens and the state.
