The Executive Chairman of the Enugu State Internal Revenue Service, Ekene Nnamani, says traders and operators in the informal sector now pay a flat ₦36,000 annual levy under a harmonised tax system, eliminating multiple taxation and boosting the state’s internally generated revenue from less than ₦100 million to ₦7.4 billion within one year.
Nnamani disclosed this on Thursday during a stakeholders’ sensitisation on the new tax law held at the African Heritage Institution in Enugu.
He explained that the initiative was introduced to address the long-standing challenge of multiple taxation affecting traders and transport operators across the state.
“Before now, you had different agencies ESWAMA, local government, and even federal authorities—coming at different times to collect levies. What we did was to harmonise everything,” he said.
According to him, the ₦36,000 annual payment covers several levies, including presumptive tax, environmental fees, business premises charges, signage fees, and market union dues.
“We told market players to pay ₦36,000 a year, and once you pay that money, nobody enters the market again. That brought all the markets into one sector,” he stated.
Nnamani noted that the state also introduced a technology-driven “one-stop-shop” payment system using e-tickets, which has been in operation for two years.
“It is a beautiful system of revenue collection. It has given the state a lot of money,” he added.
He further highlighted reforms in the transport sector, where commercial tricycle operators previously faced multiple levies across different local government areas.
“A Keke man could be stopped in Enugu East, Enugu North, Enugu South and even Enugu West in one day. We said no—pay once to the state, and everything is covered,” he said.
Under the new system, he explained, payments made by operators are automatically distributed among relevant agencies through a digital platform.
“You pay daily and at midnight, the money splits automatically using technology. By doing that, nobody stops the Keke man again anywhere in the state,” Nnamani said.
He emphasised that the reform has significantly improved revenue generation from the informal sector.
“In that area where the state hardly made ₦100 million in a year, just last year we were able to pull ₦7.4 billion into the state,” he revealed.
The ESIRS chairman also disclosed that similar harmonisation has been extended to the formal sector through a consolidated demand notice system, which outlines all taxes payable by businesses annually.
“We don’t want multiple agencies disturbing businesses. Everything is captured in one notice—land charges, ESWAMA fees, business premises—everything,” he said.
Nnamani dismissed claims that the new tax law is ambiguous, blaming misinformation on media reports.
“It’s the media that is confusing the people. The tax law is straightforward. The areas people say are ambiguous have been corrected in the new gazette by the National Assembly,” he said.
He stressed that business registration would soon become mandatory across the state.
“In Enugu, very soon, even to raise an umbrella, we must know where you are. If we don’t know where you are, don’t raise that umbrella,” he warned.