Governor Peter Mbah of Enugu State has rejected claims that residents and businesses are subjected to high taxation, stating that the state government has not increased taxes but has focused on expanding the tax net and improving revenue collection systems.
Public discussion has emerged in Enugu State regarding taxation and revenue collection under the current administration.
The state government has implemented several fiscal reforms aimed at improving internally generated revenue and addressing leakages in public finance.
Governor Mbah addressed the issue during an interview aired on Afia Television, where he explained the state’s approach to revenue generation and clarified the legal framework governing taxation in Nigeria.
Mbah stated that taxation powers are largely determined by federal law and that state governments cannot independently legislate on major taxes.
“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,” he said.
He explained that taxes such as Personal Income Tax, Company Income Tax, Value Added Tax, and Withholding Tax are governed by federal legislation.
The governor said the state’s internally generated revenue increased through measures such as widening the tax base, blocking revenue leakages, and introducing improved collection mechanisms including a Consolidated Demand Notice and electronic ticketing.
According to him, the state’s internally generated revenue rose from N26.8 billion in 2022 to N37.4 billion in 2023, N180.5 billion in 2024, and N406.7 billion in 2025.
He also noted that tax revenue accounted for N51.5 billion, representing 12.6 percent of the N406.7 billion generated in 2025, while non-tax revenue contributed N355.2 billion or 87.4 percent.
Mbah further explained that for areas within the state’s authority, such as fees and levies, the government had reduced some charges.
He said a committee that included market leaders, organised labour, and the chamber of commerce reviewed rates across South-East states and found Enugu’s rates to be among the lowest in the region.
The governor added that some rates were reduced by about 70 percent in sectors such as land-related charges.
Mbah acknowledged the presence of illegal revenue collectors in parts of the state and said the recently enacted Enugu State Harmonised Taxes and Levies Law, 2026, aims to address unauthorised collections and roadblocks.
He stated that enforcement measures and public awareness efforts would be strengthened to curb extortion by unauthorised collectors.
