Enugu State recorded the lowest tax revenue-to-Internally Generated Revenue (IGR) ratio in 2025, with tax collections accounting for just 12.67 per cent of its total revenue, according to figures attributed to the National Bureau of Statistics (NBS) by StatiSense.
Enugu State recorded the lowest tax revenue-to-Internally Generated Revenue (IGR) ratio among states in Nigeria in 2025, with only 12.67 per cent of its total IGR coming from tax revenues.
The figures, published by StatiSense on its verified X handle and attributed to the National Bureau of Statistics (NBS), showed that Enugu generated N406.7 billion in IGR during the year, with N51.52 billion coming from taxes, while the remaining revenue was derived from non-tax sources.
The development comes after the NBS earlier ranked Enugu among the leading states in IGR growth, behind Lagos and Rivers states.
However, in terms of the contribution of taxes to total IGR, Enugu recorded the lowest ratio, indicating that non-tax sources accounted for the bulk of its internally generated revenue in 2025.
Abia State recorded the highest tax-to-IGR ratio, with taxes accounting for 100 per cent of its N70.41 billion revenue.
The Federal Capital Territory (FCT) also recorded a 100 per cent tax contribution to its N356.34 billion IGR.
Bayelsa ranked third with 99.39 per cent, followed by Rivers with 96.72 per cent and Sokoto with 92.44 per cent, completing the top five states with the highest tax contribution to IGR.
Other states with relatively low tax dependence included Kwara with 38.42 per cent, Katsina with 39.93 per cent, Osun with 41.53 per cent and Ogun with 44.10 per cent.
The figures come amid public discussions over Enugu State’s revenue growth and concerns about taxation under the administration of Governor Peter Mbah.
Speaking at a recent televised town hall meeting in Enugu, Governor Peter Mbah dismissed allegations that his administration was overtaxing residents, attributing the claims to opposition criticism and resistance from individuals who benefited from irregularities in the previous revenue collection system.
The governor maintained that the increase in the state’s IGR was driven largely by improved revenue collection, technology, economic diversification and the recovery and optimisation of previously underutilised government assets.
He explained that his administration had introduced technology to block revenue leakages and eliminate cash payments made on behalf of the state government.
Mbah also said the government had expanded the tax net to capture individuals and businesses that previously operated outside the tax system, rather than increase existing tax rates.
“This is one falsehood that has been so peddled that it’s even beginning to take a semblance of a truth. Meanwhile, overtaxation does not exist, and I think those who think we may be taxing more are essentially looking at the sort of growth we have recorded in our IGR.
“Because they couldn’t have imagined such growth happening within the period it happened, they felt perhaps the only justification is that we have burdened the people of Enugu to realise that. But that’s far from the truth,” he said.
The governor identified the recovery, completion, rehabilitation and commercial optimisation of previously underutilised state-owned assets as major contributors to the increase in revenue.
Among the assets he mentioned were Hotel Presidential, Enugu United Palm Products Limited, Nigergas, Nike Lake and the International Conference Centre.
He also identified newer revenue-generating investments, including Enugu Air, as part of the state’s strategy to diversify its income sources.
According to Mbah, tax revenues currently account for a relatively small portion of Enugu’s IGR, although he expects their contribution to increase as economic activities expand across the state.
He further clarified that some payments made by residents and businesses for government services were often wrongly classified as taxes.
He cited payments for Certificates of Occupancy (C-of-O), refuse disposal services provided by the Enugu State Waste Management Authority (ESWAMA) and other statutory services as examples.
The governor said his administration had consolidated several business-related charges and services into an annual payment of N36,000, covering business premises and other applicable rates and services.
He explained that the amount translated to approximately N100 daily.
Mbah also recalled directing that market women should no longer be subjected to daily collections of N100 or N200 by revenue agents at markets across the state.
The governor said the measures were part of efforts to streamline revenue collection, improve transparency and ensure that the state’s growing IGR was driven by broader economic activities and non-tax revenue sources.
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