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Enugu State has shattered previous revenue benchmarks, recording N406.77 billion in Internally Generated Revenue (IGR) in 2025, driven largely by non-tax income and a strategic push to harness dormant state assets.
The state’s Internal Revenue Service (ESIRS) disclosed that tax revenue accounted for N51.5 billion, just 12.6 per cent of total IGR, while non-tax revenue contributed a staggering N355.2 billion, representing 87.4 per cent. The figures highlight a deliberate shift by Governor Peter Mbah’s administration from dependence on federally allocated funds to a more diversified and sustainable revenue base.
Speaking at a press briefing in Enugu, ESIRS Chairman, Mr. Emmanuel Nnamani, attributed the dramatic growth in IGR to technology deployment, e-payment systems, broader tax net coverage without increasing rates, and rigorous reforms aimed at plugging revenue leakages.
“The state’s total IGR in 2022 was N26.8 billion, comprising N16.2 billion in tax revenue and N10.6 billion in non-tax revenue. In 2023, we pushed it to N37.4 billion — N22.9 billion tax revenue and N14.5 billion non-tax revenue,” Nnamani said.
He continued, “In 2024, we moved the IGR to N180.5 billion, with tax revenue at N30 billion and non-tax revenue at N150 billion. By that point, Enugu had begun thinking differently. Dependence on FAAC for every government activity had drastically reduced, and the shift from tax revenue-driven funding had begun. Our focus was on natural resources, recovery, and revival of moribund assets to stabilize revenue.”
The 2025 IGR of N406.77 billion represents 80 per cent of the N509.95 billion projected in the 2025 Appropriation Law and a remarkable 125 per cent growth from 2024. “This revenue performance shows that Enugu State has developed fiscal resilience and sustainability,” Nnamani stressed.
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Breaking down the figures further, he noted, “Out of this N406.7 billion, tax revenue is N51.5 billion — just 12.6 per cent of the total. Non-tax revenue is N355.2 billion, representing 87.4 per cent of the IGR. Most of our non-tax revenue is driven by recovery, revitalization, and optimization of state assets, many of which were previously moribund and fallow.”
Despite the dominance of non-tax revenue, Nnamani said the state remains committed to growing its tax base.
“If you look at the trend, you would see a conscious effort to grow tax revenue. In 2025 alone, tax revenue grew from N30 billion in 2024 to N51.5 billion — a 72 per cent increase year-on-year, outperforming the 31 per cent growth recorded in 2024. Tax revenue is the most sustaining for any government, which is why we have intensified efforts in line with tax laws,” he explained.
Nnamani highlighted that technology and accountability measures have been central to plugging revenue leakages. “What we have done with tax revenue and, by extension, non-tax revenue from fees, levies, and assets, is to introduce traceability, accountability, and transparency,” he said.
Looking ahead, Enugu State has set an ambitious IGR target of N870 billion for 2026. While tax revenue may temporarily dip due to a pro-citizen tax reform, Nnamani expressed confidence that compliance and overall collections will surpass expectations.
“The feedback we get from our people and businesses is encouraging. Citizens are motivated to pay taxes because they can see tangible transformations across the state — infrastructure, 260 Smart Green Schools, 260 Type 2 Primary Healthcare Centres across the 260 electoral wards, the Enugu International Conference Centre (ICC) and its 5-star hotel, the Enugu International Hospital, Enugu Air, five modern bus terminals, 100 CNG buses, and over 2,000 completed and ongoing projects. These are just a few examples of what the administration is delivering,” he concluded.
