Enugu State has recorded a historic leap in Internally Generated Revenue (IGR), posting N406.77 billion in 2025, largely driven by non-tax income and a deliberate strategy to unlock dormant state assets.
Data released by the Enugu State Internal Revenue Service (ESIRS) shows that tax revenue contributed N51.5 billion, accounting for 12.6 per cent of total IGR, while non-tax revenue brought in N355.2 billion, representing 87.4 per cent.
The figures underscore a strategic shift by Governor Peter Mbah’s administration away from reliance on federal allocations toward a more diversified and sustainable revenue structure.
Addressing journalists in Enugu, ESIRS Chairman, Mr. Emmanuel Nnamani, credited the sharp rise in revenue to the deployment of technology, the introduction of electronic payment systems, the expansion of the tax net without raising rates, and reforms aimed at blocking leakages.
He recalled that the state generated N26.8 billion in 2022, made up of N16.2 billion in tax revenue and N10.6 billion in non-tax revenue.
In 2023, IGR increased to N37.4 billion, comprising N22.9 billion in tax revenue and N14.5 billion in non-tax revenue. By 2024, the figure rose significantly to N180.5 billion, with N30 billion from taxes and N150 billion from non-tax sources.
According to Nnamani, the 2024 performance marked a turning point in the state’s fiscal approach. “Dependence on FAAC for routine government activities reduced drastically as we shifted focus to natural resources, asset recovery, and revitalization of moribund state properties to stabilize revenue,” he said.
The N406.77 billion generated in 2025 represents 80 per cent of the N509.95 billion projected in the 2025 Appropriation Law and reflects a 125 per cent growth over the 2024 figure.
Nnamani described the performance as evidence of growing fiscal resilience and sustainability.
Providing a further breakdown, he noted that while non-tax revenue currently dominates, the state is steadily strengthening its tax base.
Tax revenue rose from N30 billion in 2024 to N51.5 billion in 2025, a 72 per cent year-on-year increase, surpassing the 31 per cent growth recorded the previous year.
He emphasized that tax revenue remains the most sustainable source of funding for government and assured that efforts to boost compliance are ongoing in line with existing tax laws.
Nnamani added that transparency, accountability, and traceability mechanisms introduced through technology have been critical in plugging leakages across both tax and non-tax revenue streams.
Looking ahead, the state has set an ambitious IGR target of N870 billion for 2026.
Although tax revenue may temporarily decline due to pro-citizen tax reforms, he expressed confidence that improved compliance and expanded collections would offset any shortfall.
He also cited visible infrastructural developments as a factor motivating taxpayers, pointing to projects such as the 260 Smart Green Schools, 260 Type 2 Primary Healthcare Centres across electoral wards, the Enugu International Conference Centre and five-star hotel, Enugu International Hospital, Enugu Air, modern bus terminals, 100 CNG buses, and over 2,000 completed and ongoing projects across the state.
(The Sun)
