Governor Peter Mbah of Enugu State has signed the Enugu State Internal Revenue Service (Establishment and Consolidation of Revenue Administration) Law, 2025, marking a significant step toward improving the Ease of Doing Business and eliminating multiple taxation in the state. The new law consolidates tax collection under a single agency and grants the state’s Internal Revenue Service (IRS) full autonomy.
Speaking at the signing ceremony at Government House, Enugu, on Tuesday, Mbah described the law as a milestone in his administration’s effort to make Enugu the top investment destination in Nigeria. He emphasized that the law would put an end to the harassment of business owners by multiple tax agents.
“With the signing of this bill into law, we now have one revenue collection point. Whether for market women, the organized private sector, or different government agencies, you will have a clear, single point where you pay your tax and receive an official receipt. This eliminates the confusion and harassment caused by multiple tax collectors,” Mbah said.
The law consolidates both state and local government revenues into a unified collection system. Each tier of government will receive its rightful share, similar to how land charges and Value Added Tax (VAT) are administered. The governor explained that this streamlined process would ensure transparency and accountability in revenue collection.
The new legislation also grants the Enugu State IRS autonomy, enabling it to operate independently. This includes the ability to set revenue targets, hire and fire staff, and adopt business-like practices to meet its objectives.
“The Enugu State Inland Revenue Service is now an autonomous institution. It can function professionally, set performance goals, and manage its operations independently to improve efficiency and results,” Mbah noted.
He dismissed misconceptions about recent revenue growth in the state, clarifying that it was achieved by expanding the tax net, plugging revenue leakages, and leveraging technology—not by increasing tax rates.
“Let me be clear: we have not increased any tax in Enugu State. Our improved revenue is due to broadening the tax base and ensuring that previously unaccounted-for cash collections are now fully captured in the state’s accounts,” he said.
The Speaker of the Enugu State House of Assembly, Hon. Uchenna Ugwu, praised the law as a game-changer for the state’s economy. He noted that it would enhance the Ease of Doing Business, boost internally generated revenue (IGR), and close loopholes in tax administration.
“This is a turning point in revenue collection in Enugu State. It will undoubtedly improve the state’s economy and provide a significant benefit to residents,” Ugwu said.
Governor Mbah expressed his gratitude to the state assembly for their support and quick passage of the bill, reiterating his administration’s commitment to fostering a business-friendly environment and driving economic growth in Enugu State.
