Enugu State Reports Lowest Tax Revenue-to-IGR Ratio in Nigeria

According to the latest figures released by the National Bureau of Statistics (NBS) through its verified X handle, Enugu State has recorded the lowest tax revenue-to-internally generated revenue (IGR) ratio in Nigeria for the year 2025. The data indicates that out of a total IGR of N406.7 billion, only N51.52 billion, representing 12.67%, was derived from tax revenues, with the remainder sourced from non-tax revenues.

This alarming statistic showcases Enugu's significant dependence on non-tax revenue streams, which could pose challenges for the state's fiscal sustainability. Experts argue that a strong tax base is essential for any state’s economic stability and growth, as it allows for better funding of public services and infrastructure development. The reliance on non-tax revenues may indicate underlying issues with tax compliance or the effectiveness of the state's revenue collection mechanisms.

Furthermore, this trend raises questions about the state's policy framework and its ability to enhance tax collection processes. Stakeholders in the Enugu economic landscape are now calling for a comprehensive review of the existing tax policies and practices to ensure that the state can diversify its revenue sources and reduce its dependence on non-tax income.

“A robust tax system is crucial for long-term economic development. The current figures suggest that Enugu must urgently address its tax collection strategies,” remarked an economic analyst familiar with the region's fiscal policies.

As the state grapples with these challenges, it remains to be seen how the government will respond to improve its tax revenue performance and ensure a more balanced and resilient economic structure moving forward.