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Enugu State revenue system has undergone major changes with more emphasis being placed on use of technology, accountability and proper tax collection as well as reducing leakages.
Executive Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Ekene, revealed this when he addressed journalists in the state capital, to mark his three years in office.
He also spoke on the different taxes paid by residents and businesses, just as he explained that the revenue service was deploying technology to identify buildings across the state, to appropriately assess them for tax purposes.
Nnamani came into office in August 2023, shortly after the administration of Governor Peter Mbah assumed office. At the time, he said, Enugu’s internally generated revenue stood at about ₦37.4 billion in 2023, noting that the new administration was concerned about the state’s dependence on funds coming from the Federation Account and wanted to increase the internally generated revenue.
Three years later, the figures have changed considerably. Enugu’s IGR increased from ₦37.4 billion in 2023 to ₦180.5 billion in 2024, and then to ₦406.77 billion in 2025 — a 125 per cent increase on the previous year. The state had projected ₦509.9 billion for the year and recorded about 80 per cent of the target.
But whilst the figure of ₦406.77 billion may suggest tax was responsible for most of the money, Nnamani explained that this was not the case. Tax revenue accounted for ₦51.5 billion of the ₦406.77 billion generated in 2025 — just 12.6 per cent. Non-tax revenue, on the other hand, accounted for ₦355.2 billion, or 87.4 per cent, which he attributed largely to the recovery, revitalisation and optimisation of state assets that had previously been dormant.
Tax revenue still recorded growth of its own, rising from ₦30 billion in 2024 to ₦51.5 billion in 2025 — a 72 per cent increase.
Nnamani said the state has been able to increase revenue through the use of technology, e-payment, widening the tax net without increasing tax rates, and efforts to block leakages.
He explained the different taxes and revenue payments handled by ESIRS. For employees, there is the Pay-As-You-Earn (PAYE), which is deducted from income and remitted to the government. There is also direct assessment tax for individuals who fall under that category, as well as withholding tax, which applies to certain payments and transactions.
Other taxes and revenues administered by the service include capital gains tax, property and land-use tax, economic development levy, and different withholding taxes, including deductions on payments to contractors, rent, royalties and directors’ fees.
He stressed that it was important to properly educate residents of the state as they often do not know exactly what a particular tax is for or why they are being asked to pay it. He urged residents and businesses to understand their tax obligations and to make payments through the proper channels.
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Nnamani warned residents to stop paying cash to individuals who approach them to collect tax or revenue on behalf of the state. He said payments should be made through approved channels, in order to reduce the possibility of revenue leakage and make it easier to trace how much a taxpayer has paid.
ESIRS currently provides electronic services for tax-related transactions, whilst the agency has also been moving towards digital revenue collection and e-payment. He urged residents to report individuals who demand cash payments for taxes by making calls or sending SMS to the following complaints hotline: 08075625555.
Speaking further, Nnamani disclosed the intention of the government to deploy an application that will allow people, particularly university students, to assist in property enumeration in different parts of the state, entering information including the building number, location and the name of the owner. For every property successfully enumerated, the person would receive ₦200.
The idea, according to the Chairman, is to help the state know the number of buildings in Enugu and have better data about who owns them. It fits into the wider move by ESIRS to use technology to improve revenue administration and create a more accurate database.
He made clarifications on the rising cost of accommodation, particularly in areas with large student populations, to clear misconceptions about taxes contributing to the rapid increase.
His words: “Rent in Enugu State is not caused by tax. It is not actually an Enugu State case. This is national. There is a report that Nigeria has over 20 million housing deficit. The housing deficit is actually responsible for the increasing rent. Over time, we have not actually built houses that can accommodate people to suit our population growth.
He explained that the problem is largely connected to demand and supply, noting that Enugu does not have enough housing to meet the number of people looking for accommodation. The growing number of students coming into the state from other parts of the country has also increased demand for houses, people that come from other states for construction work can equally bring about pressure on house rent. He mentioned government plans to work together with TETFund to provide more accommodation, including hostels for students around higher institutions in the state.
Nnamani linked improved tax compliance to the projects being carried out by the state government, pointing to the Smart Green Schools, primary healthcare centres, Enugu International Conference Centre, Enugu Air, transport terminals, CNG buses and other infrastructure projects.
For ESIRS, the three-year journey has therefore been about more than collecting tax. It has been about changing how revenue is collected, making taxpayers understand their obligations, reducing leakages and ensuring that people can trace where their payments are going.
Nnamani said that as Enugu moves into the next phase, the challenge will be to ensure that the growth in revenue is matched with a tax system that ordinary residents, workers, traders and businesses can understand and comply with without unnecessary difficulty.
