Enugu State Grows Revenue 1,418% Without Raising Taxes

Enugu State in southeastern Nigeria has achieved something remarkable: growing government revenue by over 1,400% in just three years without increasing the tax burden on its people.

The state's internally generated revenue jumped from $17.9 million in 2022 to a staggering $271.8 million in 2025. What makes this achievement unusual is how they did it: 87% of the 2025 revenue came from non-tax sources.

Governor Peter Mbah's administration took a different path when he assumed office. Instead of raising taxes or creating new fees, his team looked at what the state already owned but wasn't using.

The strategy centered on two main pillars: recovering control of Enugu's valuable coal deposits and breathing new life into abandoned state-owned businesses. Coal from Enugu is considered some of the highest quality in the world, but the resource had been underutilized for years.

The government also revived dormant enterprises like Sunrise Flour Mill and Niger Gas, turning money-losing assets into revenue generators. Emmanuel Nnamani, who chairs the state's revenue service, explained that plugging leaks and using technology to track money flows made a massive difference.

What started as $17.9 million in 2022 grew to $25 million in 2023, then $120.6 million in 2024. The 2025 figure of $271.8 million represents 80% of what officials projected in the state budget.

Tax revenue did grow too, climbing 72% from 2024 to 2025, reaching $34.4 million. But Nnamani credits this increase to voluntary compliance rather than enforcement or higher rates.

The Ripple Effect

Citizens actually became more willing to pay existing taxes when they saw results. New schools, healthcare centers, transport terminals, and hospitals began appearing across the state.

This visible progress created a positive cycle: better services led to greater trust, which led to better tax compliance, which funded more improvements. The government didn't have to strong-arm anyone.

For 2026, Enugu has set an ambitious target of $581 million in internal revenue. Officials believe sustained economic activity and continued confidence in governance will help them exceed even that projection.

The Enugu model offers a blueprint for other resource-rich regions struggling with tight budgets: sometimes the answer isn't finding new ways to tax people, but better ways to manage what you already have.

When governments focus on optimizing existing assets and demonstrating tangible results, citizens respond not with resistance but with cooperation.