In a Milestone, Enugu Raked N355bn IGR from Non-tax Sources in 2025
• Mbah attributes revenue surge to asset recovery, technology, crackdown on leakages as state records lowest tax-to-IGR ratio
James Emejo in Abuja
Enugu State generated about 87 per cent of its N406.7 billion Internally Generated Revenue (IGR) in 2025 from non-tax sources, recording the lowest tax revenue-to-IGR ratio among states and the Federal Capital Territory (FCT).
Data published by StatiSense on its verified X handle, and quoting the National Bureau of Statistics (NBS), showed that tax revenue accounted for only N51.52 billion, or 12.67 per cent, of the state’s total IGR of N406.7 billion during the year.
The figures highlight the extent to which Enugu’s revenue expansion has relied on sources outside conventional taxation, amid Governor Peter Mbah’s insistence that his administration’s fiscal reforms and mobilisation of dormant public assets, rather than increased tax rates, are driving the state’s rising earnings.
The development comes after the NBS ranked Enugu among the leading states in IGR growth, behind only Lagos and Rivers, reinforcing the state’s position as one of the stronger performers in subnational revenue generation.
While Enugu recorded the lowest tax contribution to IGR, Abia State topped the tax-dependence ranking, with taxes accounting for 100 per cent of its N70.41 billion revenue.
The FCT also recorded a 100 per cent tax-to-IGR ratio, with its N356.34 billion IGR entirely attributed to tax revenue in the figures cited.
Bayelsa, Rivers and Sokoto followed with tax contributions of 99.39 per cent, 96.72 per cent and 92.44 per cent, respectively.
Other states with relatively low tax dependence included Kwara, where 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 recovery, revenue reforms
Speaking at a recent town hall meeting in Enugu, Mbah rejected claims that his administration had increased the tax burden on residents, arguing that the perception was being fuelled by political opponents and interests affected by changes to the state’s revenue collection system.
He attributed the growth in IGR to the introduction of technology to curb revenue leakages, the elimination of cash collections on behalf of the state government, and the recovery and commercialisation of previously underperforming public assets.
According to the governor, the administration had expanded the state’s revenue base by restoring dormant assets to productive use and developing new revenue-generating ventures.
Among the facilities he cited were Hotel Presidential, Enugu United Palm Products Limited, Nigergas, Nike Lake and the International Conference Centre, which he said had been recovered, completed, rehabilitated or repositioned to generate income.
Mbah also identified Enugu Air as part of the state’s emerging revenue-generating assets, noting that the administration’s strategy was focused on expanding the state’s economic base rather than placing additional levies on residents and businesses.
The governor said, “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 said the scale of IGR growth had prompted some critics to assume that residents must have been subjected to higher taxes to account for the increase.
“But that’s far from the truth,” he added. The governor further explained that his administration had prioritised the closure of revenue leakages and the activation of assets that previously contributed little or nothing to the state’s finances.
“First of all, we plugged all the leakages. We ensured that nobody makes payments in cash on behalf of the state government,” he said.
He added that the government had also consolidated charges for certain services to reduce multiple collections and ease the burden on residents and businesses.
Governor disputes claims of higher taxes
Mbah maintained that the state had not increased tax rates, but had widened the tax net to capture individuals and businesses previously outside the formal revenue system.
He pointed out that bringing more eligible taxpayers into the system, alongside improved compliance and the recovery of public assets, had strengthened the state’s finances.
He also contended that states could not independently alter rates for taxes governed by federal legislation, citing levies such as Personal Income Tax, Company Income Tax, Value Added Tax and Withholding Tax.
Mbah further said some payments for government services were routinely mistaken for taxes, including charges relating to Certificates of Occupancy (C-of-O) and waste disposal services provided by the Enugu State Waste Management Authority (ESWAMA).
According to him, the administration had consolidated several service charges, citing an annual payment of N36,000 for businesses covering business premises and other rates and services. That translates to N100 per day.
The governor also said he had directed the cessation of informal collections from traders in markets, following complaints that market women were being asked to pay N100 or N200. “I made an announcement to stop that; that nobody should collect N100 or N200 from our market women,” he said.
Non-tax revenue could reshape state finances
The NBS-attributed figures suggest that Enugu’s revenue model differs significantly from those of states whose IGR is overwhelmingly tax-driven.
With only 12.67 per cent of its IGR coming from taxes, the state’s revenue performance depends substantially on its ability to sustain earnings from non-tax sources, including public assets, service charges and other revenue-generating activities.
The strategy could provide the government with additional avenues for financing infrastructure and public services without relying exclusively on tax collections.
Its long-term sustainability, however, will depend on the commercial performance of the assets, the consistency of their returns and the government’s capacity to maintain them.
Mbah acknowledged that the tax component of IGR could rise over time as economic activity expands and more individuals and businesses enter the formal economy.
The state’s challenge will therefore be to sustain the growth in overall revenue while ensuring that its expanding collection system remains transparent, predictable and affordable for households and businesses.
Responding to critics, the governor said, “Because they couldn’t have imagined such growth happening within the period it happened, they felt perhaps the only justification is that we have burdened the people of Enugu to realise that. But that’s far from the truth.
“So, what did we do to grow our IGR? First of all, we plugged all the leakages. We ensured that nobody makes payments in cash on behalf of the state government.
“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.”
