According to StatiSense, a data analysis platform, Enugu State generated N406.7 billion in Internally Generated Revenue (IGR) in 2025, with only N51.52 billion, or 12.67%, coming from tax revenues. The remaining 87.33% came from non-tax revenues. This makes Enugu State the lowest in terms of tax revenue-to-IGR ratio among the 36 states and the Federal Capital Territory (FCT) in 2025.
Interestingly, Enugu State was rated number one in IGR growth among the 36 states and the FCT earlier in 2025, coming only behind Lagos and Rivers States. However, in terms of tax component of IGR, the state recorded the lowest tax-to-IGR ratio. Abia State led with 100% of its N70.41 billion IGR in 2025 coming from taxes, followed by the FCT, which had 100% of its N356.34 billion 2025 IGR coming from tax revenues.
Other states that make up the top five tax-dependent states for IGR are Bayelsa (99.39%), Rivers (96.72%), and Sokoto (92.44%). On the other hand, states with the least tax dependence for IGR include Kwara (38.42%), Katsina (39.93%), Osun (41.53%), and Ogun (44.10%). Enugu State's low tax revenue-to-IGR ratio has sparked debate about the state's revenue generation strategy.
Governor Peter Mbah of Enugu State has dismissed the narrative that his administration is overtaxing the people, saying it is being fueled by opposition and beneficiaries of corruption and sharp practices that prevailed in the revenue collection system until his administration came on board. He noted that the surge in the state's revenue was driven by innovation and economic diversification under his administration.
According to Governor Mbah, his administration has widened the tax net to bring in more people who had never paid tax, but had never increased taxes. He explained that taxation is on the Exclusive Legislative List of the Constitution, and no state can legislate to increase or lower any form of tax. He also mentioned that his administration has plugged revenue leakages and activated dormant assets to boost revenue.
Governor Mbah named some of the dormant assets his administration recovered, completed, or resuscitated, and then optimized and monetized, including the Hotel Presidential, Enugu United Palm Products Limited, Nigergas, Nike Lake, and the International Conference Centre. He also mentioned new revenue-yielding assets like Enugu Air, saying tax revenues constitute a marginal component of the state's IGR.
Governor Mbah expects the tax component to grow with time as more economic activities occur in the state. He also clarified that payments for services rendered by the government, such as the issue of Certificate of Occupancy (C-of-O) and refuse disposal, are often mistaken for taxes. His administration has consolidated most of the services and costs, with businesses paying N36,000 annually for various rates and services.
Key points
- Enugu State recorded the lowest tax revenue-to-IGR ratio in 2025, with only 12.67% of its IGR coming from tax revenues.
- Abia State led with 100% of its IGR coming from taxes, followed by the FCT, Bayelsa, Rivers, and Sokoto states.
- Governor Peter Mbah's administration has implemented reforms to boost revenue, including plugging leakages, activating dormant assets, and widening the tax net.
