Enugu Denies Imposing Arbitrary Levies

Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, has dismissed allegations that the state was imposing arbitrary levies, insisting that taxes and revenues in Enugu State remain within the limits of the law.

Nnamani maintained that they do not impose any levies outside what the law permits and debunked what he described as “false and misleading claims” circulating on social media regarding the state’s tax regime.

Nnamani, who made the clarification during a media briefing held in Enugu, reaffirmed his commitment to legality and transparency, and laid out a roadmap for future fiscal administration in the state.

He explained that tax administration in the state is guided primarily by the Personal Income Tax Act (as amended), which empowers the ESIRS to collect personal income tax through two principal means: Pay-As-You-Earn (PAYE) for individuals in formal employment, and Direct Assessment for those outside the formal sector.

Nnamani emphasised that compliance is generally seamless among those in formal employment but admitted that enforcement mechanisms – including legal action – are sometimes necessary to ensure compliance from others.

The ESIRS chairman noted that one of the most critical challenges has been transitioning the informal sector – particularly market traders and transport operators – into the formal tax net.

He noted that upon assumption of office, it was discovered that 99 per cent of informal sector players were not remitting taxes to the state, largely due to the interference of non-state actors who collected revenues informally.

“In response, the state introduced a consolidated ₦36,000 annual levy for market traders. This fee covers various charges, including environmental sanitation (ESWAMA), signage fee, LG stillage, and business premises levies.

“Once this amount is paid between January and March, the trader owes nothing else for that year,” he stated.

He further disclosed that although the law prescribes penalties of 10 per cent and interest at MPR 27.5 per cent, the state has deliberately not enforced these punitive measures strictly on the informal sector, opting for a flat ₦3,000 sanction to encourage ease of doing business.

On the rising cost of rent, Nnamani dismissed claims linking it to taxation, describing the trend as “a nationwide challenge driven by demand and supply, not state tax policies and cited his personal experience with housing inflation dating back to 2015, long before the current administration began enforcing tax laws.

Responding to reports labelling Enugu as one of the most expensive states in Nigeria, Nnamani acknowledged the perception but attributed it to demand-pushed inflation, particularly in construction materials.

He explained that Enugu sources granite from Ebonyi and rods from other states, and that the multiple infrastructural projects ongoing simultaneously – such as 270 smart schools, 260 T2 health centres, and hospitality infrastructure – have temporarily inflated demand.

“Once these projects are completed, demand for materials will fall and prices will stabilise,” he assured.

Nnamani noted that Enugu’s tax regime is not an outlier but is consistent with federal laws implemented across all states.

“We’re not here to compete with other states. Our duty is to apply the law fairly and ensure that our people prosper,” he said.