Enugu State has achieved a substantial increase in its Internally Generated Revenue (IGR), reporting N406.77 billion for 2025. This figure represents 80% of the N509.95 billion projected in the state’s appropriation law and marks a 125% rise from the N180.5 billion recorded in 2024, as announced by Mr. Emmanuel Nnamani, Chairman of the Enugu State Internal Revenue Service (ESIRS).
The announcement, made during a press briefing at the ESIRS office, details a consistent upward trend in revenue collection. In 2022, IGR was N26.8 billion, composed of N16.2 billion in tax revenue and N10.6 billion in non-tax revenue. Following Mr. Nnamani’s appointment in 2023, IGR rose to N37.4 billion, with tax at N22.9 billion and non-tax at N14.5 billion. The most significant leap occurred in 2024, when IGR reached N180.5 billion, driven by a surge in non-tax revenue to N150 billion.
This shift from tax-driven funding was intentional, Mr. Nnamani explained. The state prioritized exploiting natural resources and reviving moribund assets, which by 2024 had drastically reduced dependence on the Federation Account Allocation Committee (FAAC) for governmental activities. “The shift from tax revenue driven funding had happened as of 2024,” he stated.
In 2025, non-tax revenue continued to dominate, contributing N355.2 billion (87.4%) of the total IGR. Tax revenue grew to N51.5 billion (12.6%), reflecting a 72% year-on-year increase from the N30 billion recorded in 2024. This growth in tax collections, Mr. Nnamani noted, is vital for sustainable governance. “Tax revenue is most sustaining for any national and subnational government,” he said, adding that ESIRS is intensifying efforts to enhance tax compliance in line with existing laws.
Looking forward, Enugu State has set an IGR target of N870 billion for 2026, aiming to further bolster fiscal independence. This performance demonstrates the state’s developing fiscal resilience and sustainability, reducing vulnerabilities associated with volatile federal allocations. In Nigeria’s federal structure, where states often rely heavily on monthly oil-based distributions, Enugu’s revenue diversification strategy provides a model for enhancing local economic stability and funding public services without excessive external dependence.
