Governor Peter Mbah of Enugu State has dismissed claims that his administration imposed heavy taxes on residents, describing the allegation as a “pathetic misconception” being pushed by opposition figures and individuals who previously benefited from a flawed revenue collection system.
Speaking in an interview aired on Afia Television on Wednesday evening, the governor insisted that the state government had not increased taxes but had instead expanded the tax net, blocked leakages, and improved transparency in revenue collection.
According to Mbah, the surge in the state’s Internally Generated Revenue (IGR) was driven by reforms such as the introduction of consolidated demand notices, e-ticketing, and the recovery and monetisation of dormant government assets.
He explained that under the Constitution of the Federal Republic of Nigeria 1999, the state government does not have the authority to create or alter major tax laws.
“First, as a state, we are not able to legislate on taxation. It is in the exclusive legislative list, which can only be legislated on by the National Assembly. Whether it is your Personal Income Tax, your Company Income Tax, your Value Added Tax or your Withholding Tax, those taxes can only be legislated on by the National Assembly,” he said.
IGR Growth Explained
The governor noted that Enugu’s revenue growth had surprised critics who failed to understand how dormant assets could be optimized to boost public finances.
“I think for those framing this false narrative, it is beyond their imagination that we could optimise our dormant assets and grow our revenue exponentially.”
He revealed that the state’s IGR increased from ₦26.8 billion in 2022 to ₦37.4 billion in 2023, rising sharply to ₦180.5 billion in 2024, and reaching ₦406.7 billion in 2025.
Mbah added that the majority of the revenue was generated from non-tax sources, not taxation.
“They fail or refuse to take note of the fact that in 2025, for instance, tax revenue accounted for only ₦51.5 billion or 12.6 per cent of the ₦406.7 billion IGR, while non-tax revenue was ₦355.2 billion or 87.4 per cent.”
Reduction in Rates and Levies
The governor also clarified that where the state has authority—such as rates and service fees—his administration had actually reduced charges rather than increased them.
He said a committee involving market leaders, organised labour, and the Enugu Chamber of Commerce, Industry, Mines and Agriculture compared rates across the South-East before recommending reductions.
“It turned out that Enugu is the lowest in the South East. But that notwithstanding, we crashed those rates even further by 70 per cent especially in the land sector,” Mbah stated.
Crackdown on Illegal Revenue Collectors
While denying claims of excessive taxation, the governor acknowledged the continued activities of illegal revenue collectors operating across the state.
He said the recently enacted Enugu State Harmonised Taxes and Levies (Approved List for Collection) Law, 2026 was designed to eliminate unauthorized collections and roadside levies.
“Under our laws, we have consolidated all these services and you only just have one payment that you make and you are done with all the services that the government provides.”
Mbah warned that individuals extorting money from residents would face arrest and prosecution.
“Some people still go about extorting money from helpless citizens because this is a practice that has gone on over the years. But we have constituted a standing task force to track and bring them to book.”
He urged residents to report illegal collectors using newly established toll-free lines provided by the state government.
“We also want the citizens to report them. We now have several toll-free lines where citizens can call freely. They do not have to have airtime to place such calls.”
