Enugu has the lowest tax revenue compared to its IGR

Enugu State had the lowest tax revenue compared to its Internally Generated Revenue (IGR) in 2025, according to StatiSense, which shared data from the National Bureau of Statistics (NBS).

StatiSense posted on its verified X handle that only N51.52 billion, or 12.67 percent of the N406.7 billion generated by Enugu State in 2025, came from taxes. The remaining money came from non-tax sources.

Earlier this year, the NBS rated Enugu State first in IGR growth among the 36 states and the FCT. It was just behind Lagos and Rivers States in that order.

But when it comes to tax revenue as part of IGR, Enugu recorded the lowest ratio. Abia State topped the list, with 100 percent of its N70.41 billion IGR in 2025 coming from taxes.

The FCT followed closely, with 100 percent of its N356.34 billion IGR in 2025 also from tax revenues. Bayelsa (99.39 percent), Rivers (96.72 percent), and Sokoto (92.44 percent) were the top five states that relied heavily on taxes for their IGR.

Other states with low tax dependence for IGR include Kwara (38.42 percent), Katsina (39.93 percent), Osun (41.53 percent), and Ogun (44.10 percent).

At a recent town hall meeting in Enugu, which was broadcast live by national television stations, Governor Peter Mbah responded to claims that his government was overtaxing residents. He said this narrative was pushed by the opposition and those benefiting from past corrupt practices in revenue collection.

Mbah explained that his administration introduced reforms and technology to improve revenue collection and reduce losses. He emphasized that the increase in the state’s revenue came from innovation and diversifying the economy.

He reminded the audience that taxation falls under the Exclusive Legislative List of the Constitution. This means no state can change tax rates without federal legislation.

Mbah said his government expanded the tax net to include more people who had never paid taxes but did not raise existing taxes.

“This is a falsehood that has been spread, and it is starting to seem like a truth. Overtaxation does not exist. Those who think we are taxing more are looking at our IGR growth.

They couldn’t believe such growth could happen so quickly, so they assume we burdened the people of Enugu to achieve it. But that is far from the truth.

How did we grow our IGR? First, we plugged the leakages. We made sure no one pays in cash for anything on behalf of the state government.

We also activated many of our dormant assets. We now make good money from those assets and have created new ones,” he said.

He mentioned assets like Hotel Presidential, Enugu United Palm Products Limited, Nigergas, Nike Lake, and the International Conference Centre, which his government has revived or improved.

He also highlighted new revenue sources like Enugu Air, saying tax revenue is a small part of the state’s IGR.

Mbah added that he expects tax revenue to grow as more economic activities take place in the state.

He noted that many people confuse payments for government services, like C-of-O and waste disposal by the Enugu State Waste Management Authority (ESWAMA), for taxes. He stated that his administration has streamlined many services and costs.

“How much did we say they should pay? N36,000 a year for businesses. This includes business premises and other rates and services. That’s just N100 a day.

We also received complaints about people collecting money in the markets. I told everyone to stop collecting N100 or N200 from our market women,” he explained.