Enugu State Governor, Dr. Peter Ndubuisi Mbah, has announced plans by his administration to establish a multi-stakeholder committee to investigate allegations of tax increase in the state. The governor clarified that his administration has not raised any tax rates but has rather expanded the tax net and introduced reforms to block revenue leakages.
Speaking during a media chat with journalists at the Government House, Enugu, Governor Mbah explained that the significant rise in Enugu’s Internally Generated Revenue (IGR) was largely due to the introduction of e-payment systems and technology that have enhanced transparency and accountability in revenue collection.
He attributed the false narratives of increased taxation circulating in the state to individuals and groups who were beneficiaries of the old corrupt order that thrived on manual cash collection and leakages.
Recall that Enugu State recently recorded a total of ₦180.05 billion IGR, up from ₦37 billion in 2023, ranking 5th nationwide according to the 2024 IGR report by the National Bureau of Statistics. Lagos State topped the list with ₦1.26 trillion, followed by Rivers (₦317.3 billion), FCT (₦282.3 billion), and Ogun (₦194.9 billion).
Defusing opposition claims about over-taxation, Governor Mbah said:
“The taxation thing you hear is actually misplaced. I have committed to setting up a committee that will include market unions, civil society organizations, non-governmental organizations, and other relevant groups to review our tax space and come up with a report.”
He further explained that tax rates cannot be unilaterally increased by the state, since personal and company income taxes are legislated by the National Assembly, not by the Enugu State House of Assembly.
Governor Mbah stated that what his administration did was to displace entrenched corrupt interests by ensuring all payments are made directly to the state treasury through electronic means.
“The era of people going to markets with papers to harass traders, drivers, and Keke operators for cash payments is gone,” he said.
He acknowledged that reforms of this nature often provoke resistance:
“Once you initiate programmes and policies like this, you will be displacing some entrenched interests, and they will fight back. But as leaders, we must listen, which is why I am setting up the committee to review and ensure fairness.”
Governor Mbah assured that the committee would commence work soon and reaffirmed his administration’s commitment to transparency, accountability, and fair taxation in Enugu State.