By Ngwuoke Ngwuoke

Following social media speculations and concerns by some members of the public, Executive Chairman of Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, has provided clarifications on the government’s tax policies.

In a media parley Thursday in Enugu, Nnamani described as “false and misleading”, some reports on the tax policies and reassured residents that the government’s fiscal operations are firmly rooted in law, transparency, and public good stating that no taxes or levies in Enugu State are imposed outside the provisions of the law.

“Taxes and revenues in Enugu State remain within the limits of the law. We do not impose any levies outside what the law permits. The Personal Income Tax Act (as amended) is our guiding legal framework”.

He explained that the ESIRS collects personal income tax through two lawful means: Pay-As-You-Earn (PAYE) for those in formal employment, and Direct Assessment for informal sector workers. While compliance among salaried workers has been largely smooth, the agency sometimes employs legal enforcement mechanisms to ensure compliance among self-employed individuals.

Nnamani however noted that bringing the informal sector, especially market traders and transport operators, into the formal tax net has been a key challenge. He disclosed that upon assuming office, his administration discovered that an overwhelming 99% of informal sector actors were not remitting taxes to the state, largely due to the disruptive influence of non-state actors engaged in illegal collections.

“In response to this, the government introduced a consolidated ₦36,000 annual levy for market traders. This amount, payable between January and March, covers all relevant state-level charges, including those by the Enugu State Waste Management Agency (ESWAMA), Enugu State Structures for Signage and Advertisement Agency (ENSSAA), storage fees, and business premises levies.

“Once this amount is paid between January and March, the trader owes nothing else for that year. Traders who fail to pay by March 31 are subject to enforcement.

“For street vendors operating outside structured markets, an annual levy of ₦30,000 applies, with ESWAMA charges handled separately. Transport operators such as Okada riders, Keke drivers, minibuses, tankers, and trucks pay via a daily ticketing system”.

Nnamani stated that the agency adopts a human face approach during enforcement.

“Although the law stipulates a 10% penalty on unpaid tax and an interest charge tied to the Central Bank’s Monetary Policy Rate of 27.5%, we have adopted a softer, pro-business approach. Instead of the full punitive charges, a flat ₦3,000 penalty is applied in most informal sector cases to promote ease of doing business and encourage voluntary compliance”.

The Chairman said that in line with its commitment to transparency and digital innovation, the ESIRS had launched a tax calculator on its official portal – www.irs.en.gov.ng – allowing residents to compute their taxes with ease and clarity. “This is about transparency and giving our people confidence,” he said, inviting residents to compare Enugu’s tools with those in more advanced states like Lagos.

Responding to a question on growing concerns over rising rent in the state, Nnamani rejected claims linking the trend to state tax policies. He described the issue as a national challenge influenced by supply and demand, rather than fiscal policy.

On concerns that Enugu has become one of the most expensive states in the country, Nnamani acknowledged the perception but explained that the inflation is temporary and largely demand-driven. With Enugu undertaking widespread infrastructural renewal – including smart schools, primary health centres, and hospitality infrastructure – the surge in construction activities has led to increased demand for building materials like granite and rods, which are sourced from other states.

He was optimistic that “once these projects are completed, demand will drop, and prices will stabilise,” pointing at the projects as visible testaments to what taxpayers’ money can achieve when properly managed.

While stressing the need for symbiotic relationship between citizens and government, Nnamani appealed for public understanding, noting that when citizens fulfil their tax obligations, government would, in turn, provide essential services and infrastructure that uplift everyone.

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