Enugu State generated about 87 per cent of its N406.7 billion Internally Generated Revenue (IGR) in 2025 from non-tax sources, recording the bottom tax revenue-to-IGR ratio amongst states and the Federal Capital Territory (FCT).
Data printed by StatiSense on its verified X deal with, and quoting the National Bureau of Statistics (NBS), confirmed that tax income accounted for under N51.52 billion, or 12.67 per cent, of the state’s complete IGR of N406.7 billion throughout the 12 months.
The figures spotlight the extent to which Enugu’s income enlargement has relied on sources outdoors standard taxation, amid Governor Peter Mbah’s insistence that his administration’s fiscal reforms and mobilisation of dormant public property, moderately than elevated tax charges, are driving the state’s rising earnings.
The improvement comes after the NBS ranked Enugu among the many main states in IGR development, behind solely Lagos and Rivers, reinforcing the state’s place as one of many stronger performers in subnational income era.
While Enugu recorded the bottom tax contribution to IGR, Abia State topped the tax-dependence rating, with taxes accounting for 100 per cent of its N70.41 billion income.
The FCT additionally recorded a 100 per cent tax-to-IGR ratio, with its N356.34 billion IGR solely attributed to tax income within the figures cited.
Bayelsa, Rivers and Sokoto adopted with tax contributions of 99.39 per cent, 96.72 per cent and 92.44 per cent, respectively.
Other states with comparatively low tax dependence included Kwara, the place taxes represented 38.42 per cent of IGR; Katsina, 39.93 per cent; Osun, 41.53 per cent; and Ogun, 44.10 per cent.
Mbah cites asset restoration, income reforms
Speaking at a latest city corridor assembly in Enugu, Mbah rejected claims that his administration had elevated the tax burden on residents, arguing that the notion was being fuelled by political opponents and pursuits affected by adjustments to the state’s income assortment system.
He attributed the expansion in IGR to the introduction of know-how to curb income leakages, the elimination of money collections on behalf of the state authorities, and the restoration and commercialisation of beforehand underperforming public property.
According to the governor, the administration had expanded the state’s income base by restoring dormant property to productive use and growing new revenue-generating ventures.
Among the services he cited have been Hotel Presidential, Enugu United Palm Products Limited, Nigergas, Nike Lake and the International Conference Centre, which he stated had been recovered, accomplished, rehabilitated or repositioned to generate revenue.
Mbah additionally recognized Enugu Air as a part of the state’s rising revenue-generating property, noting that the administration’s technique was targeted on increasing the state’s financial base moderately than inserting extra levies on residents and companies.
The governor stated, “This is one falsehood that has been so peddled that it’s even beginning to take a semblance of a truth,” dismissing allegations of overtaxation.
Mbah stated the dimensions of IGR development had prompted some critics to imagine that residents should have been subjected to larger taxes to account for the rise.
“But that’s far from the truth,” he added. The governor additional defined that his administration had prioritised the closure of income leakages and the activation of property that beforehand contributed little or nothing to the state’s funds.
“First of all, we plugged all the leakages. We ensured that nobody makes payments in cash on behalf of the state government,” he stated.
He added that the federal government had additionally consolidated expenses for sure companies to scale back a number of collections and ease the burden on residents and companies.
Governor disputes claims of upper taxes
Mbah maintained that the state had not elevated tax charges, however had widened the tax internet to seize people and companies beforehand outdoors the formal income system.
He identified that bringing extra eligible taxpayers into the system, alongside improved compliance and the restoration of public property, had strengthened the state’s funds.
He additionally contended that states couldn’t independently alter charges for taxes ruled by federal laws, citing levies resembling Personal Income Tax, Company Income Tax, Value Added Tax and Withholding Tax.
Mbah additional stated some funds for presidency companies have been routinely mistaken for taxes, together with expenses referring to Certificates of Occupancy (C-of-O) and waste disposal companies supplied by the Enugu State Waste Management Authority (ESWAMA).
According to him, the administration had consolidated a number of service expenses, citing an annual fee of N36,000 for companies masking enterprise premises and different charges and companies. That interprets to N100 per day.
The governor additionally stated he had directed the cessation of casual collections from merchants in markets, following complaints that market girls have been being requested to pay N100 or N200. “I made an announcement to stop that; that nobody should collect N100 or N200 from our market women,” he stated.
Non-tax income may reshape state funds
The NBS-attributed figures recommend that Enugu’s income mannequin differs considerably from these of states whose IGR is overwhelmingly tax-driven.
With solely 12.67 per cent of its IGR coming from taxes, the state’s income efficiency relies upon considerably on its capacity to maintain earnings from non-tax sources, together with public property, service expenses and different revenue-generating actions.
The technique may present the federal government with extra avenues for financing infrastructure and public companies with out relying completely on tax collections.
Its long-term sustainability, nonetheless, will rely upon the business efficiency of the property, the consistency of their returns and the federal government’s capability to keep up them.
Mbah acknowledged that the tax element of IGR may rise over time as financial exercise expands and extra people and companies enter the formal financial system.
The state’s problem will due to this fact be to maintain the expansion in general income whereas guaranteeing that its increasing assortment system stays clear, predictable and reasonably priced for households and companies.
Responding to critics, the governor stated, “Because they couldn’t have imagined such development taking place throughout the interval it occurred, they felt maybe the one justification is that now we have burdened the individuals of Enugu to understand that. But that’s removed from the reality.
“So, what did we do to develop our IGR? First of all, we plugged all of the leakages. We ensured that no person makes funds in money on behalf of the state authorities.
“But, importantly, we have so far activated a whole lot of our dormant assets. We now earn quite a lot from those assets, and we built new ones.”
James Emejo in Abuja
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