|
Listen to article
|
Enugu State generated 406.8 billion naira in Internally Generated Revenue (IGR) in 2025, reaching about 80 percent of its 509.9 billion naira target for the year, state officials said on Sunday, marking the strongest revenue performance in the state’s history.
The Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, announced the figures at a media briefing in the state capital, saying the result reflected the impact of wide-ranging reforms introduced under Governor Peter Mbah’s administration.
“At the end of 2025, Enugu State government collected a total IGR of 406.8 billion naira,” Nnamani said. “If you compare the target and the actual, the state achieved 80 percent of the revenue goal for the year.”
He said the figure represented a 125 percent increase from the 180.5 billion naira generated in 2024 and showed that the state had expanded its revenue base significantly in a short period.
The performance marks a sharp turnaround for a state that, just three years ago, relied heavily on federal allocations to meet basic obligations.
Nnamani said scepticism had greeted the 2025 revenue target when it was announced last year, with critics doubting the state’s capacity to raise more than half a trillion naira internally. “But what we have seen is that with the right structure, discipline and political will, it is achievable,” he said.
A breakdown of the 2025 figures shows that non-tax revenue made up the bulk of the collections.
According to ESIRS data, tax revenue stood at 51.5 billion naira, representing 12.6 percent of total IGR. Non-tax revenue contributed 355.2 billion naira, or 87.4 percent.
Tax revenue was driven mainly by personal income taxes and grew 72 percent from the 30 billion naira recorded in 2024. That growth rate exceeded the 31 percent increase seen in the previous year.
Nnamani said the figures underlined the state’s strategy to broaden revenue sources beyond traditional taxation while improving compliance. “The data shows we are not just squeezing taxpayers. We are unlocking value from assets, services and processes that were previously unaccounted for,” he said.
He traced the revenue surge to reforms introduced after Governor Mbah took office, including restructuring revenue agencies, tightening leakages and focusing on non-tax income streams such as fees, licenses, land-related charges and service-based earnings.
Read also: Enugu State Ex-Guber Candidate, Edeoga Dumps LP
Before the current administration, Enugu State’s total IGR stood at 26.8 billion naira in 2022, made up of 16.2 billion naira in tax revenue and 10.6 billion naira in non-tax revenue.
Upon assuming office, the governor directed all revenue-generating agencies to expand collections aggressively and reduce dependence on monthly allocations from the federal government.
In 2023, the government issued a directive that federal allocations should no longer be used to fund routine recurrent spending such as salaries, pensions and overheads, pushing ministries and agencies to rely more on internally generated funds.
“So at the end of 2023, we generated 37.4 billion naira in tax revenue and 14.5 billion naira in non-tax revenue,” Nnamani said.
The momentum continued into 2024 and accelerated in 2025, he added, as systems were digitised and enforcement mechanisms strengthened.
The ESIRS chairman said the state government had also invested in technology to track payments and reduce human contact, helping to cut down on corruption and revenue losses.
“We moved from a manual, fragmented system to a centralised digital platform. That is one of the biggest changes,” he said.
Despite the gains, Nnamani said the government planned to introduce pro-citizen tax reforms aimed at easing the burden on residents and small businesses. He acknowledged that tax revenue growth might slow temporarily as a result.
“However, non-tax revenue and better compliance will continue to drive overall growth,” he said.
Looking ahead, Enugu State has set an ambitious IGR target of 870 billion naira for 2026.
Nnamani said the target was based on ongoing projects and reforms rather than projections alone. “We are not guessing numbers. We are working with data and with assets that are already being developed,” he said.
The performance comes as Nigerian states face mounting pressure to raise more money internally amid rising costs and uncertainty over federal transfers.
According to national data, Nigeria’s 36 states and the Federal Capital Territory generated a combined 3.63 trillion naira in IGR in 2024.
Between 2021 and 2024, cumulative IGR across the states and the FCT rose to 10.88 trillion naira, reflecting a broader push by subnational governments to strengthen local revenue systems.
Many states have struggled with low compliance, weak enforcement and over-reliance on oil-funded federal allocations.
Enugu’s experience, officials say, shows how revenue diversification and administrative reforms can shift that balance.
Nnamani noted that the goal is sustainability, and the team is building a system that will outlive any administration and keep the state financially stable.
