The Enugu State Government has outlined how it grew its Internally Generated Revenue (IGR) from N26.8 billion in 2022 to N406.7 billion in 2025, largely by shifting focus from taxes to non-tax revenue sources.
Speaking on Sunday, the Chairman of the Enugu State Internal Revenue Service (ENSIRS), Emmanuel Nnamani, said the unprecedented growth was driven by a deliberate policy initiated by Governor Peter Mbah to reduce the state’s dependence on Federation Account Allocation Committee (FAAC) allocations and ensure long-term fiscal sustainability.
According to Nnamani, the administration adopted an asset-driven revenue model that prioritised the recovery and optimisation of Enugu State’s natural resources and the revitalisation of dormant public assets.
He identified Enugu’s vast coal deposits—described as among the best globally—as a major contributor to the revenue surge, alongside the revival of moribund state-owned enterprises, including Sunrise Flour Mill and Niger Gas.
Nnamani disclosed that Enugu’s IGR stood at N26.8 billion in 2022, comprising N16.2 billion in tax revenue and N10.6 billion from non-tax sources. The figure rose modestly to N37.4 billion in 2023 before jumping sharply to N180.5 billion in 2024, driven largely by N150 billion in non-tax revenue.
In 2025, the state recorded total IGR of N406.77 billion out of the N509.95 billion projected in the Appropriation Law, representing about 80 per cent budget performance and a 125 per cent increase over the 2024 figure.
A breakdown of the 2025 revenue shows that tax income accounted for N51.5 billion, or 12.6 per cent, while non-tax revenue contributed N355.2 billion, representing 87.4 per cent of total IGR.
Nnamani attributed the growth to aggressive asset optimisation, the elimination of revenue leakages, and the deployment of technology to enhance transparency, accountability, and revenue traceability.
He added that tax revenue also recorded strong growth, rising by 72 per cent from N30 billion in 2024 to N51.5 billion in 2025, reflecting improved compliance and growing confidence in the state’s governance framework.
Looking ahead, Nnamani revealed that the state has projected an IGR of N870 billion for 2026. He noted that while ongoing tax reforms may initially moderate growth, increased compliance and sustained economic expansion are expected to drive performance beyond projections.
He further linked the improved willingness of residents and businesses to pay taxes to visible infrastructural investments across the state, including Smart Green Schools, primary healthcare centres, transport terminals, hospitals, and other landmark projects.
