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Enugu State Governor, Peter Mbah, has announced plans to establish a committee to investigate allegations of tax increases in the state.
Speaking during a media chat at the Government House, Enugu, the governor clarified that his administration had not raised tax rates but merely expanded the tax net to include more eligible payers.
Mbah explained that the surge in the state’s Internally Generated Revenue (IGR) resulted from reforms, including the introduction of electronic payment systems and technologies aimed at blocking revenue leakages.
He attributed the spread of misinformation about taxation in Enugu to individuals who had benefited from the previously corrupt revenue collection process.
According to data from the National Bureau of Statistics, Enugu State generated ₦180.05 billion in 2024, representing a significant increase from ₦37 billion in 2023, and placing it fifth nationwide. Lagos led with ₦1.26 trillion, followed by Rivers (₦317.3 billion), the FCT (₦282.3 billion), and Ogun (₦194.9 billion).
Addressing concerns over alleged excessive taxation, Mbah said, “The narrative of increased taxation is misleading. However, I have decided to set up a committee comprising market unions, civil society groups, NGOs, and other stakeholders to review the state’s tax system and submit recommendations.”
He stressed that his government lacked the legal authority to alter tax rates, noting that personal and company income taxes are set by the National Assembly, not by the Enugu State House of Assembly.
The governor added that the state’s only reform was to end manual cash collection by touts and replace it with direct e-payments into government accounts. “The era of traders, drivers, and Keke operators being harassed with paper receipts is over,” he said.
Mbah acknowledged that these reforms had unsettled entrenched interests benefiting from the old system. “Whenever you introduce such policies, those who profited previously will resist,” he noted.
He reaffirmed his commitment to transparency and public engagement, adding, “As leaders, we must listen. We’ll probe further to uncover any hidden issues, which is why the committee will be formed soon.”
