The Economic Community of West African States (ECOWAS) is facing a significant funding crisis as several member countries struggle to meet their obligations in remitting community levy payments.

This issue, which threatens to disrupt the regional bloc’s operations, was brought to the forefront during the closing ceremony of a two-day induction session for new ECOWAS Parliament members in Lome, Togo.

The community levy, a vital source of income for ECOWAS, has seen alarming shortfalls this year, raising concerns about the bloc’s ability to function effectively.

ECOWAS Parliament is raising alarm over the growing shortfalls in levy remittances from several member countries.

Anna Jagne, the director of finance and administration, stated that 2024 has seen the worst compliance with levy payments in recent years, posing serious risks to the regional bloc’s operations.

The community levy, which is a 0.5% tax on goods imported from non-ECOWAS countries, constitutes between 70-90% of ECOWAS’s annual budget.

Nigerian MP Awaji Abiante linked the challenges in remitting the levy to economic difficulties within member states.

“The issue of community levy is directly related to the state of our economies.

“As long as our economies continue to decline, contributing to the regional fund will be difficult,” he explained.

Gambian MP Darbo Alhagie stressed the importance of identifying countries that are defaulting on their payments and encouraging compliance.

“Failure to pay the levy affects not only the Parliament but also other key ECOWAS institutions,” he warned.

Memounatou Ibrahima, Speaker of ECOWAS Parliament, praised the induction session as a significant step in enhancing members’ understanding of ECOWAS’s institutions and their roles.

“We are the custodians of our people’s aspirations. These resources are a treasure for ECOWAS institutions,” she said.

The ongoing shortfall in community levy payments is seen as a critical issue that must be addressed to ensure the continued effectiveness of ECOWAS operations. (BusinessDay)