Enugu State Records ₦406.7 Billion Internally Generated Revenue in 2025, Targets ₦870 Billion in 2026

The Enugu State Government has announced a historic leap in its Internally Generated Revenue (IGR), recording a total of ₦406.77 billion in 2025, a dramatic increase that underscores a major shift in the state’s fiscal strategy and revenue management framework. The disclosure was made by the Chairman of the Enugu State Internal Revenue Service (ESIRS), Mr. Emmanuel Nnamani, during a press briefing held in Enugu on Sunday.

A breakdown of the figures shows that tax revenue accounted for ₦51.5 billion, representing 12.6 per cent of the total IGR, while non-tax revenue stood at ₦355.2 billion, contributing a dominant 87.4 per cent. According to the state government, this revenue profile reflects a deliberate diversification strategy aimed at reducing overdependence on statutory allocations from the Federation Account Allocation Committee (FAAC).

Providing historical context, Mr. Nnamani recalled that Enugu State’s IGR stood at ₦26.8 billion in 2022. Following the assumption of office by Governor Peter Mbah in 2023, the figure rose to ₦37.4 billion that year. The upward trajectory accelerated significantly in 2024, when IGR jumped to ₦180.5 billion, before more than doubling to ₦406.7 billion in 2025.

Mr. Nnamani attributed the “astronomic growth” to far-reaching reforms introduced by the Mbah administration, including the deployment of technology, full adoption of e-payment systems, expansion of the tax net without increasing tax rates, and aggressive measures to block revenue leakages. He explained that the state deliberately shifted focus from traditional tax-driven funding to the recovery, revitalisation, and optimisation of previously moribund public assets and natural resources.

“In 2022, Enugu State generated ₦26.8 billion, made up of ₦16.2 billion in tax revenue and ₦10.6 billion in non-tax revenue,” Nnamani said. “By 2023, we pushed the figure to ₦37.4 billion. In 2024, we moved it to ₦180.5 billion, and by that time, the state had begun to think differently. Dependence on FAAC for routine government activities had reduced drastically.”

According to him, Enugu State collected ₦406.77 billion out of the ₦509.95 billion projected in the 2025 Appropriation Law, translating to an 80 per cent budget performance and a 125 per cent growth over the 2024 IGR figure. He described the performance as evidence of growing fiscal resilience, sustainability, and improved public financial management.

The ESIRS chairman further clarified that the overwhelming contribution of non-tax revenue was largely driven by the recovery and optimisation of state-owned assets that had remained idle for years. He stressed that plugging revenue leakages through technology has improved traceability, accountability, and transparency across revenue collection channels.

Despite the relatively smaller share of tax revenue, Nnamani expressed optimism about sustained growth in this area. He noted that tax revenue increased from ₦30 billion in 2024 to ₦51.5 billion in 2025, representing a 72 per cent year-on-year growth and outperforming the 31 per cent growth recorded the previous year. He explained that massive investments in infrastructure are expected to attract more residents and businesses, expand economic activity, and create additional taxable employment opportunities.

Looking ahead, the Enugu State Government has projected an ambitious ₦870 billion IGR target for 2026. While tax revenue is expected to moderate due to the implementation of pro-citizen tax reforms, the government remains confident that improved compliance and economic expansion will continue to drive growth.

Nnamani attributed rising taxpayer confidence to visible development projects across the state, including the construction of 260 Smart Green Schools and 260 Type 2 Primary Healthcare Centres across all electoral wards, the Enugu International Conference Centre, a five-star hotel, the Enugu International Hospital, Enugu Air, five modern transport terminals, 100 CNG buses, and over 2,000 completed and ongoing projects.

According to him, the scale of transformation has encouraged citizens and businesses to fulfil their tax obligations, believing that their contributions are being translated into tangible improvements. With its aggressive reforms and ambitious projections, Enugu State is positioning itself as one of Nigeria’s fastest-growing subnational economies and a reference point for fiscal innovation and sustainability.