Enugu introduces N36,000 traders levy as IGR hits N7.4bn

The Enugu State Internal Revenue Service, under Chairman Ekene Nnamani, has implemented a groundbreaking N36,000 annual levy for traders and informal sector operators. This move is a strategic effort to consolidate various existing taxes into a single, harmonized payment, thereby eradicating the persistent issue of multiple taxation that has plagued businesses and transport operators in the state. The initiative is not just about simplifying tax collection; it's a powerful engine for boosting the state's internally generated revenue (IGR), which has seen a dramatic surge from less than N100 million to an impressive N7.4 billion within a single year.

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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.

The new system streamlines payments by covering presumptive tax, environmental fees, business premises charges, signage fees, and market union dues under one umbrella. This "one-stop-shop" approach, supported by a technology-driven e-ticketing system, ensures that once the annual levy is paid, traders are free from further demands. This not only simplifies compliance for businesses but also creates a more predictable and efficient revenue stream for the state government.

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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.

Reforms in the transport sector, particularly for commercial tricycle operators, have also been a significant focus. Previously, these operators faced constant stops and levies from different local government authorities. The new system mandates a single state payment, with digital distribution of funds to relevant agencies, ensuring operators are no longer harassed. This comprehensive reform demonstrates Enugu State's commitment to improving the business environment and maximizing its revenue potential through innovation and efficient management.

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It is a beautiful system of revenue collection. It has given the state a lot of money.