Inconsistent tax policies, double VAT undermining AfCFTA in West Africa — Experts

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, on Wednesday in Abuja, tax administrators, trade officials and business leaders said that unless tax systems are aligned across member states, intra regional trade will remain slow and costly despite tariff reductions.

Finance Manager, Coordinator of Committees and Networks, West African Tax Administration Forum, Azibator Deborah Obudah, said 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.

“Most times they wait for a long period to get those refunds so that they can plough it back into their businesses. It can hinder trade. Definitely it will affect trade.”

Obudah maintained that harmonised tax policies would enhance predictability, simplify compliance, improve administrative cooperation and support revenue sustainability across the sub region.

Earlier, Chief Executive Officer of the Nigeria Export Promotion Council, Mrs. Nonye Ayeni, said beyond tax reforms, Nigeria must address production gaps and quality standards if it hopes to compete effectively within Africa and globally.

She emphasised that boosting production and supporting farmers and manufacturers remain critical.

Ayeni also highlighted the importance of capacity building and certification to prepare exporters for competitive markets.

On international partnerships, she queried how developed countries could move from aid to trade.

Also speaking, Economic Affairs and Finance Officer, Federation of West Africa Chambers of Commerce and Industry (FEWACCI), Uka Chika Kalu, said AfCFTA must deliver measurable benefits for women and youth who form a large part of Africa’s population.

She explained that collaborative initiatives with regional and international partners have already produced tangible results.

Kalu stressed that inclusion requires structured engagement and collaboration with institutions to produce measurable outcomes.

Similarly, Prominent Business Woman and member of the Federation of Business Women Enterprise (FEBWE), Erelu Florida Okunowo, identified limited access to finance, trade related information and productive resources as key barriers facing women entrepreneurs.

She added that high collateral requirements, complex regulatory standards and certification processes further limit women’s participation in external markets.

To address these gaps, she called for improved access to affordable financial instruments, digital trade support, capacity building and simplified documentation procedures.