Governor Peter Mbah of Enugu State has signed a bill into law to create a one-stop shop for tax collection and administration. This move ends multiple taxation in the state.
The new legislation, known as the Enugu State Internal Revenue Service (Establishment and Consolidation of Revenue Administration) Law, 2025, is to unify all state and local government taxes. It also makes the revenue collection agency – the Enugu State Internal Revenue Service autonomous and free from bureaucratic encumbrances.
During the short signing ceremony at Government House, Enugu, on Tuesday, January 4, Mbah called the law a milestone in improving the ease of doing business.
“I have engaged the business community, the organised private sector, and market women. They all complained about multiple taxation. That will end from today,” he said.
The governor explained that the new law consolidates revenues of state and local governments. Each tier of government will receive its due revenue, similar to land charges and Value Added Tax (VAT).
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“We now have one revenue collection point. This is a major milestone that will help us track all revenues in the state,” he added.
The Enugu State Inland Revenue Service henceforth functions autonomously. “They can set and meet targets like a business. They now have the power to hire and fire employees, making the Revenue Service a professional body,” Mbah explained.
The governor clarified that the rise in the state’s Internally Generated Revenue (IGR) is due to widening the tax net and plugging revenue leakages. The state did not have to increase the tax rates.
“We have not increased any tax in Enugu State. We have expanded the tax net and ensured all collected funds are properly accounted for,” he said.
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He praised the Enugu State House of Assembly for their support and quick passage of the executive bill.
A Government of Many Strides
The Speaker of the State Assembly, Hon. Uchenna Ugwu, described the bill as a turning point in revenue collection.
“It will improve the ease of doing business, increase the IGR, and block loopholes in revenue collection and administration. It is a great gift to the people of Enugu State,” he said.
In November 2024, the state passed a 2025 budget of ₦971 billion. Documents showed the state under Dr Mbah was able to grow the state’s Internally Generated Revenue (IGR) from ₦37.4 billion in 2023 to ₦144.7 billion by September 2024, an incredible 286.2%.
Mbah said this growth leap helps reduce the state’s dependence on federal allocations.
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