Enugu State Governor, Peter Mbah, has signed into law the Enugu State Internal Revenue Service (Establishment and Consolidation of Revenue Administration) Law, 2025, aimed at eliminating multiple taxation and streamlining tax collection in the state.
The new legislation establishes a one-stop tax collection system, ensuring that businesses, market traders, and individuals pay taxes through a single, transparent channel. It also grants the Enugu State Internal Revenue Service (ESIRS) full autonomy, freeing it from bureaucratic constraints and enabling it to function more efficiently.
Speaking at the bill-signing ceremony at the Government House, Enugu, on Tuesday, Mbah described the law as a milestone in his administration’s push to enhance the Ease of Doing Business and attract investors.
I have engaged with business owners, the organized private sector, and market traders, and their biggest concern has been multiple taxation. Different agents issue various tax receipts, creating confusion and inefficiencies. That ends today, Mbah stated.
He emphasized that with the new law, all tax payments”whether from market traders, businesses, or government agencies”will now be made through a single, designated collection point, eliminating unauthorized tax collectors.
The governor further explained that the law consolidates state and local government revenues, ensuring that each tier of government receives its due share. This model, he noted, is already in use for land charges and Value Added Tax (VAT).
The idea is simple: we now have one collection point, but revenue is properly allocated to the appropriate levels of government. This ensures transparency, efficiency, and accountability, he added.
With this legislation, the Enugu State Internal Revenue Service will now function as an autonomous institution, allowing it to operate independently and set performance targets.
The ESIRS will now run like a professional organization, with the power to hire and fire employees, set revenue targets, and implement best practices in tax administration, Mbah noted.
Addressing concerns about rising revenue figures, Mbah clarified that there has been no tax increase in Enugu State. Instead, the government has expanded the tax net, plugged revenue leakages, and implemented technology-driven collection systems.
What has changed is our approach. We have widened the tax base and ensured that payments previously made in cash are now properly accounted for and remitted to the state’s treasury, he explained.
Speaker of the Enugu State House of Assembly, Hon. Uchenna Ugwu, praised the bill as a turning point in tax administration, highlighting its role in improving the Ease of Doing Business, boosting internally generated revenue (IGR), and eliminating loopholes in the collection process.
This law is a major gift to the people of Enugu State. It will create a more transparent, efficient, and business-friendly tax system, Ugwu stated.
With this law in place, Enugu State moves closer to becoming a leading destination for investment and economic growth in Nigeria.
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