Enugu hits Record of ₦406bn IGR in 2025, eyes ₦870bn in 2026

The Enugu State Government generated a total of ₦406.77 billion from taxes and other revenue sources in 2025, marking a significant increase from the ₦180.5 billion recorded in the 2024 fiscal year, the Executive Chairman of the Enugu State Internal Revenue Service, Mr Emmanuel Ekene Nnamani, has said.

Nnamani disclosed this on Sunday while briefing journalists, explaining that although the state had projected an internal revenue target of ₦509.9 billion for 2025, it achieved about 80 per cent of the target

According to him, the 2025 performance represents a major leap in the state’s revenue profile and reflects what he described as growing fiscal resilience and sustainability under the administration of Governor Peter Mbah.

“Enugu State collected a total IGR of ₦406,774,321,758.87 out of the ₦509,947,000,000 projected in the 2025 Appropriation Law.

“This represents an 80 per cent performance from a budget perspective and a 125 per cent growth compared to the 2024 figure of ₦180.5 billion,” Nnamani said.

He noted that the state’s internally generated revenue had witnessed steady and dramatic growth in recent years, recalling that Enugu generated just ₦26.8 billion in 2022 and ₦37.4 billion in 2023.

“The total IGR of Enugu State in 2022 was ₦26.8 billion, made up of ₦16.2 billion in tax revenue and ₦10.6 billion in non-tax revenue. In 2023, when the present administration took over, IGR stood at ₦37.4 billion,” he said.

Nnamani explained that shortly after his appointment in August 2023, Governor Mbah considered the revenue profile unsustainable and directed the ESIRS to drastically increase internally generated revenue to reduce dependence on monthly allocations from the Federation Account Allocation Committee.

“The governor mandated us to raise the state’s IGR in a profound way, reduce reliance on FAAC, and look beyond tax revenue.

“He gave a matching order that salaries, pensions, and overheads should be funded internally, and directed the Accountant General to source funding for these from IGR,” he said.

He added that following the directive, the state pushed its IGR to ₦37.4 billion in 2023, made up of ₦22.9 billion tax revenue and ₦14.5 billion non-tax revenue, before recording ₦180.5 billion in 2024.

“In 2024, the IGR rose to ₦180.5 billion, comprising ₦30 billion in tax revenue and ₦150 billion in non-tax revenue. By then, Enugu State had started thinking differently, and dependence on FAAC for every government activity had drastically reduced,” he said.

Nnamani disclosed that non-tax revenue accounted for the bulk of the ₦406.7 billion generated in 2025, largely driven by the recovery and optimisation of previously moribund state assets.

“Out of the ₦406.7 billion IGR in 2025, tax revenue stood at ₦51.5 billion, representing 12.6 per cent, while non-tax revenue was ₦355.2 billion, representing 87.4 per cent. Most of the non-tax revenue came from recovery, revitalisation, and optimisation of state assets that were previously fallow,” he explained.

He, however, said the government had continued to grow tax revenue, noting that tax collection increased by 72 per cent year-on-year, from ₦30 billion in 2024 to ₦51.5 billion in 2025.

“This shows resilience and deliberate effort to grow tax revenue, which is the most sustainable source of income for any government.

“We have focused on plugging leakages and deploying technology to ensure traceability, accountability, and transparency,” Nnamani said.

Looking ahead, the ESIRS chairman said 2026 would be “another year to watch” for the state, revealing that the government had projected an IGR of ₦870 billion.

“Projected IGR for 2026 is ₦870 billion. While tax revenue may initially dwindle due to the implementation of pro-citizen tax reforms, we are optimistic that improved compliance will help us beat expectations,” he said.

Nnamani attributed increased tax compliance to visible infrastructure development and governance reforms under the Mbah administration.

“The feedback from residents and businesses is that they are encouraged to pay taxes because they can see the impact—smart green schools, primary healthcare centres across all wards, the Enugu International Conference Centre, the five-star hotel, international hospital, Enugu Air, modern bus terminals, CNG buses, and over 2,000 completed and ongoing projects across the state,” he added.