The Enugu State Internal Revenue Service has announced a historic rise in the state’s financial independence, recording a total Internally Generated Revenue of N406.77 billion for the 2025 fiscal year.
The figure represents a 125 percent increase from the N180.5 billion recorded in 2024, signaling a major shift in the state’s economic trajectory under the administration of Governor Peter Mbah.
Speaking at a press conference in Enugu on Sunday, the Chairman of ENSIRS, Mr. Emmanuel Ekene Nnamani, said the performance reflects an 80 percent realization of the N509.9 billion projected in the 2025 Appropriation Law.
He explained that the surge was largely driven by a strategic shift toward non tax revenue sources, which generated N355.2 billion, representing 87.4 percent of total collections. According to him, the growth followed the recovery, revitalisation, and optimisation of previously moribund or underutilised state assets.
Tax revenue contributed N51.5 billion, accounting for 12.6 percent of total IGR and marking a 72 percent year on year increase from the N30 billion collected in 2024.
The fiscal transformation began after Governor Mbah’s inauguration in May 2023, when he pledged to overhaul the state’s revenue profile to support an ambitious development agenda.
Following his appointment in August 2023, Nnamani was mandated to increase internally generated revenue in order to reduce dependence on Federation Account Allocation Committee receipts.
The governor directed that internal revenue should be sufficient to cover salaries, pensions, and overhead costs, with priority given to these recurrent expenditures.
Revenue growth has progressed steadily from N26.8 billion in 2022 to N37.4 billion in 2023. By 2024, the state surpassed the N100 billion mark, reaching N180.5 billion as attention shifted to natural resources and asset recovery.
This progression has strengthened fiscal resilience and sustainability, moving Enugu away from a strictly tax driven model toward a diversified, asset based strategy.
In tax administration, the service has blocked leakages and deployed advanced technology to improve traceability, accountability, and transparency. Nnamani noted that although non tax revenue dominates collections, efforts are ongoing to expand the tax base within existing legal frameworks.
He added that the 72 percent growth in tax revenue in 2025 exceeded the 31 percent growth recorded in the previous year, reflecting improved efficiency in collection.
Looking ahead, the state has set a target of N870 billion in internally generated revenue for 2026. While tax revenue may fluctuate as pro citizen tax reforms are introduced, the service expressed confidence in surpassing expectations, supported by rising compliance among residents and businesses.
Nnamani attributed improved compliance to visible development across the state, including the construction of 260 Smart Green Schools and Type 2 Primary Healthcare Centers in every electoral ward.
Other major projects include the Enugu International Conference Centre, a five star hotel, the Enugu International Hospital, and the launch of Enugu Air.
The administration has also expanded transportation infrastructure with five new bus terminals and a fleet of 100 Compressed Natural Gas buses. With more than 2,000 completed and ongoing projects statewide, the government believes visible development has strengthened civic trust and encouraged voluntary tax compliance.
Nnamani expressed appreciation to residents for their continued support and confidence in Governor Mbah’s administration. He reaffirmed the commitment of the revenue service to transparency and accountability while sustaining momentum toward deeper fiscal independence for Enugu State.