Gov Mbah Signs Law To Establish One-Stop Taxation System In Enugu

Enugu Inland Revenue Service Gains Autonomy

Governor Peter Mbah of Enugu State has signed into law a bill aimed at simplifying tax collection and administration by creating a one-stop taxation system. The Enugu State Internal Revenue Service (Establishment and Consolidation of Revenue Administration) Law, 2025 grants autonomy to the revenue collection agency, eliminating bureaucratic hurdles and preventing multiple taxation.

During the signing ceremony at the Government House in Enugu, Mbah emphasized the significance of this reform in improving the Ease of Doing Business and positioning Enugu as a top investment hub.

Eliminating Multiple Taxation for Businesses

Mbah acknowledged the frequent complaints from the business community, private sector, and market traders regarding multiple taxation. He reassured them that with the new law in place, tax payments would be centralized.

“From today, all tax payments—whether for market traders, private businesses, or government agencies—will be made at a single revenue collection point. This ensures transparency and prevents unauthorized tax collection,” Mbah stated.

This reform aligns with global best practices by streamlining tax payments, making compliance easier for businesses and individuals.

How the New Taxation Law works

The new legislation consolidates state and local government revenues, ensuring that each tier of government receives its due share. Similar to Land Use Charges and Value Added Tax (VAT), tax collection will be centralized, but the revenue will be distributed accordingly.

“The idea is simple: one collection point, with appropriate revenue allocation to the relevant government bodies. This enhances transparency and accountability in revenue management,” the governor explained.

Autonomy for the Enugu State Inland Revenue Service

Under the new law, the Enugu State Inland Revenue Service (EIRS) now operates as an independent agency, allowing it to function with greater efficiency.

The agency can now set and meet revenue targets independently.
It has the authority to hire and fire employees, making it more professional.
Revenue collection processes will be guided by strict financial discipline and accountability.

IGR Growth Driven by Technology, Not Higher Taxes

Governor Mbah also addressed misconceptions regarding the state’s Internally Generated Revenue (IGR). He clarified that the surge in revenue is a result of expanding the tax net, plugging revenue leakages, and leveraging technology—rather than increasing tax rates.

“We have not raised taxes in Enugu State. Instead, we have improved revenue collection efficiency, ensuring that payments are properly documented and remitted to state accounts,” he assured.

Conclusion

The establishment of a one-stop tax collection system marks a transformative step in Enugu’s economic strategy. By streamlining tax administration, eliminating multiple taxation, and granting EIRS autonomy, the state is fostering a business-friendly environment that will attract more investors and drive sustainable growth.