Enugu State Governor Peter Mbah has announced plans to establish a committee to investigate allegations of tax hikes in the state, clarifying that his administration has not increased tax rates but rather expanded the tax net and improved collection systems.
Speaking during a media chat at the Government House in Enugu, Mbah said the sharp rise in the state’s Internally Generated Revenue (IGR) was due to the introduction of e-payment systems and other digital tools aimed at plugging revenue leakages, not an upward adjustment of tax rates.
According to data from the National Bureau of Statistics, Enugu State’s IGR surged from ₦37 billion in 2023 to ₦180.05 billion in 2024, ranking fifth nationwide. Lagos topped the chart with ₦1.26 trillion, followed by Rivers (₦317.3 billion), the FCT (₦282.3 billion), and Ogun (₦194.9 billion).
Mbah dismissed reports of over-taxation as misinformation propagated by individuals who profited from what he described as the “old corrupt revenue system.”
“The taxation thing that you hear is actually misplaced,” he said. “But I have also committed to setting up a committee that will include market unions, civil society organisations, non-governmental organisations, and other relevant groups, so they can review what is happening in our tax space and come up with a report.”
He further clarified that the state government has no legal authority to raise tax rates, as personal income and company taxes are determined by the National Assembly.
“Even under the laws, we are not able to do that. The issue of personal income tax or company income tax is legislated by the National Assembly. Those rates were not set by the Enugu State House of Assembly,” Mbah explained.
Highlighting his administration’s reforms, he noted that manual cash collections have been replaced with electronic payments to curb corruption and eliminate harassment by touts.
“Payments are now made directly to state coffers through e-payment. The era of people harassing traders, drivers, and Keke operators with paper receipts is gone,” he said.
Mbah acknowledged that the reforms had displaced entrenched interests who were now fueling misinformation to undermine progress.
“Once you initiate such policies, those benefiting from the old system will resist change,” he said, adding that the government remained receptive to feedback from citizens.
“As a leader, we must listen. I believe we need to probe further to know if there are things we are not aware of. That’s why I said we will constitute the committee, and it will be done pretty soon,” he concluded.
What You Should Know
Governor Peter Mbah’s administration has implemented a digital-driven revenue system that significantly boosted Enugu’s IGR, placing the state among Nigeria’s top five in 2024.
While allegations of tax increases persist, the government insists it merely blocked leakages and automated collections, a move that has unsettled former beneficiaries of the manual system.
