The Chairman of the Enugu State Internal Revenue Service (ESIRS), Mr. Emmanuel Ekene Nnamani, has attributed the dramatic rise in Enugu State’s Internally Generated Revenue (IGR) from N26.8 billion in 2022 to N406.77 billion in 2025 to a deliberate structural overhaul of the state’s revenue architecture, driven by asset optimisation, non-tax revenue expansion, and institutional reforms.
According to figures released by ESIRS, Enugu recorded a total IGR of N26.8 billion in 2022, made up of N16.2 billion in tax revenue and N10.6 billion in non-tax revenue. At the time, the state relied heavily on allocations from the Federation Account Allocation Committee (FAAC) to meet both recurrent and capital expenditures, with limited internally generated capacity to sustain government operations.
Mr. Nnamani explained that the turning point came with the assumption of office of Governor Peter Ndubuisi Mbah in May 2023, when the administration resolved to reduce dependence on federal allocations and fund salaries, pensions, and overheads increasingly from IGR. This policy direction, he said, necessitated a complete rethink of how the state generated revenue.
Following his appointment as ESIRS Chairman in August 2023, Mr. Nnamani was tasked with scaling up IGR, expanding revenue sources beyond conventional taxation, and strengthening internal systems. By the end of 2023, Enugu’s IGR had increased to N37.4 billion, comprising N22.9 billion in tax revenue and N14.5 billion in non-tax revenue, signalling the first clear departure from previous revenue trends.
The most significant structural shift, according to the ESIRS Chairman, occurred in 2024, when total IGR surged to N180.5 billion. While tax revenue rose modestly to N30 billion, non-tax revenue jumped sharply to N150 billion. He noted that this growth was driven largely by the recovery, revitalisation, and optimisation of state-owned assets that had remained moribund or underutilised for years, alongside a more strategic approach to natural resource-based revenue.
Reflecting on the 2024 performance, Mr. Nnamani said the year proved that Enugu State could achieve fiscal resilience and sustainability without overreliance on federal allocations, stressing that subnational governments must build the capacity to survive independently.
By 2025, the impact of the new revenue model had fully materialised. Enugu State generated N406.77 billion in IGR out of the N509.95 billion projected in the Appropriation Law, achieving an 80 percent budget performance. This represents a 125 percent increase over the N180.5 billion recorded in 2024 and more than a fifteen-fold increase from the 2022 baseline.
A breakdown of the 2025 figures shows that tax revenue contributed N51.5 billion, accounting for 12.6 percent of total IGR, while non-tax revenue stood at N355.2 billion, representing 87.4 percent. Mr. Nnamani attributed the dominance of non-tax revenue to sustained asset recovery initiatives, tighter controls over fees and levies, and improved management of state-owned assets that previously suffered significant leakages.
Despite its smaller share, he noted that tax revenue continued to grow steadily, rising from N16.2 billion in 2022 to N22.9 billion in 2023, N30 billion in 2024, and N51.5 billion in 2025. The 72 percent year-on-year increase between 2024 and 2025, he said, reflects the impact of technology-driven reforms that enhanced traceability, accountability, and transparency, as well as stricter enforcement of existing tax laws.
Mr. Nnamani emphasised that taxation remains the most sustainable form of government revenue, explaining that as the economy grows, tax receipts naturally expand. He linked future tax growth to Enugu’s ongoing urban and economic expansion, particularly the development of the New Enugu area, which spans over 10,000 hectares.
According to him, the development of the New Enugu axis will lead to increased housing, property taxation, business activity, employment, and Pay-As-You-Earn (PAYE) collections, creating a self-reinforcing cycle of economic growth and revenue expansion.
Looking ahead, Enugu State has projected an IGR of N870 billion for 2026. While tax revenue is expected to moderate as the government introduces pro-citizen tax reforms, the ESIRS Chairman expressed confidence that improved compliance, growing public trust, and visible investments in infrastructure, education, healthcare, transport, and other critical sectors will sustain revenue growth.
He reaffirmed ESIRS’ commitment to accountability, transparency, and traceability, while expressing appreciation to Ndi Enugu for their cooperation and support in building a fiscally resilient and sustainable state.
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