ECOWAS member states, including Ghana, have initiated a review of the bloc’s Community Levy as part of efforts to address declining revenues and reinforce regional financial sustainability. The levy, a 0.5% tax on imports from non-ECOWAS countries, has been in effect for over 18 years but is now facing challenges related to compliance and operational efficiency.
Speaking at the opening of an experts’ meeting in Accra to validate a draft regulation for the Community Levy Manual of Operations, Molokwu Azikiwe, Director of Budget and Treasury at the ECOWAS Commission, emphasized the importance of the review.
“The Community Levy accounts for approximately 75 to 80 percent of ECOWAS programmes and activities. It is our primary funding source,” Azikiwe stated.
He explained that after nearly two decades, the existing protocol needs to be revised to reflect evolving trade dynamics and modern approaches to revenue collection.
“Having used this protocol for about eighteen years, it’s necessary to amend and update it to align with current trends in revenue mobilisation,” he noted.
On enforcement, Azikiwe highlighted that the protocol includes sanctions for non-compliance, but any action would require approval from the Council of Ministers and the Heads of State.
“The protocol allows for sanctions, but their application is a decision reserved for higher authorities,” he said.
Also addressing the meeting, ECOWAS Commissioner for Internal Services, Prof. Nazil Abdullahi Darma, underscored the urgency of the reform.
“There is no better time than now to develop an effective operations manual,” he affirmed.
By revisiting the Community Levy framework, ECOWAS aims to revitalize its financial foundation, enhance cooperation among member states, and ensure continued funding for regional integration initiatives.
