The Governor of Enugu State, Peter Mbah, has dismissed claims that residents and businesses in the state are facing high taxes, describing the allegations as false and misleading.
Mbah said the claims were being spread by opposition groups and individuals who benefited from the old revenue system that allowed leakages and mismanagement of public funds.
The governor explained that his administration has instead improved the state’s Internally Generated Revenue (IGR) by expanding the tax net to include more eligible taxpayers and by blocking revenue leakages. He added that the government has also introduced reforms such as the use of a consolidated demand notice, e-ticketing systems, recovery and optimization of government revenue sources, and better management of state assets.
Mbah also clarified that state governments do not have the constitutional power to increase or reduce major taxes. According to him, under the Constitution of the Federal Republic of Nigeria 1999, the authority to make laws on major taxes rests with the National Assembly of Nigeria.
He made the clarification during an interview aired on Afia TV.
According to the governor, taxes such as personal income tax, company income tax, value-added tax, and withholding tax can only be regulated by the National Assembly and not by state governments.
Mbah further said critics were surprised by the significant increase in the state’s revenue under his administration. He noted that Enugu State’s IGR increased from N26.8 billion in 2022 to N37.4 billion in 2023, N180.5 billion in 2024, and N406.7 billion in 2025.
He explained that the growth in revenue was mainly due to better management of government assets and improved revenue collection systems, not increased taxes.
The governor also pointed out that tax revenue accounted for only N51.5 billion, representing 12.6 percent of the N406.7 billion IGR recorded in 2025. He said the remaining N355.2 billion, which represents 87.4 percent, came from non-tax revenue sources.
Speaking on areas where the state government has authority, such as service charges, rates, and levies, Mbah said his administration had already reduced some charges.
He explained that the government set up a committee that included market leaders, labour unions, and the Enugu Chamber of Commerce, Industry, Mines, and Agriculture to review service charges in the state and compare them with those in other states in the South-East region.
According to him, the review showed that Enugu already had some of the lowest rates in the region. Despite this, the government further reduced some of the fees by about 70 percent, especially in the land sector.
However, the governor acknowledged that illegal revenue collectors still operate in some parts of the state. He said the recently passed Enugu State Harmonised Taxes and Levies Law 2026 will help stop illegal roadblocks and unauthorised tax collections that have troubled residents.
Mbah added that the state government has created a task force to track and arrest those involved in illegal collections. He also encouraged residents to report such activities through several toll-free lines introduced by the government.
He assured citizens that the government would continue to educate the public and enforce the law to ensure that residents are protected from extortion.
