Togo: Tax breaks to revive West African gas pipeline
Togo has enacted a major fiscal reform for the West African Gas Pipeline (WAGP), a strategic gas supply infrastructure. On December 24, 2025, the National Assembly passed a law updating the more than twenty-year-old legal and fiscal framework to support the network operator and adapt to the new regional energy context.
The reform rests on three pillars. First, the initial tax exemption period for the operating company, West African Gas Pipeline Company (WAPCo), has been extended by 60 months, bringing the total exemption to ten years.
Second, the corporate tax rate on WAPCo’s profits has been reduced from 35% to 30%, aligning it with the standard applied in the other pipeline countries (Nigeria, Benin, Ghana).
Finally, the law introduces a flexibility clause allowing the state to apply a higher rate if necessary, without exceeding the original 35% ceiling.
During the plenary session, the Minister Delegate for Energy, Messan Eklo, defended the adjustments.
He cited WAPCo’s persistent financial difficulties, which have hampered its investment and maintenance capacity, and pointed to the evolving operational landscape, including a new gas entry point in Takoradi, Ghana, and new sector competitors requiring a more competitive framework.
Stretching approximately 678 kilometers, partly offshore in the Gulf of Guinea, this regional pipeline has transported Nigerian natural gas to Benin, Togo, and Ghana since its commissioning following a 2003 treaty.
Another amendment strengthens regulatory oversight by entrusting the West African Gas Pipeline Authority (WAGPA) with supervising shipper activities, ensuring transparent and harmonized management of this shared infrastructure.
This first revision since the original 2004 framework reflects Togo’s commitment to preserving the economic viability of a crucial energy asset, aiming to ease the operator’s financial burden for supply security while adapting the legal framework to current regional gas market realities.
Kodjovi Makafui
