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Traders and informal-sector operators in Enugu State will now pay a single flat annual levy of ₦36,000 under a newly harmonised tax framework introduced by the Enugu State Internal Revenue Service (ESIRS), in a move aimed at eliminating multiple taxation and widening the state’s internally generated revenue base.
The Executive Chairman of ESIRS, Ekene Nnamani, disclosed this on Thursday during a stakeholders’ sensitisation session on the new tax law held at the African Heritage Institution in Enugu State.
According to him, the reform was designed to address years of complaints from traders and transport operators who had been subjected to overlapping levies from different agencies, including local governments, environmental authorities, and market bodies.
Single payment replaces multiple levies
Nnamani explained that the ₦36,000 annual payment consolidates several charges into one unified levy. These include presumptive tax, environmental fees, business premises charges, signage fees, and market union dues.
Under the previous arrangement, traders often faced repeated demands from multiple revenue agents, a system that created confusion, increased compliance burden, and encouraged leakages in collection.
He said the harmonised structure now ensures that once a trader makes the annual payment, no other agency is permitted to demand separate levies within that cycle.
The ESIRS chairman described the policy as a major shift in the state’s tax administration model, noting that the simplification has brought predictability and relief to thousands of small business operators across markets in the state.
Revenue rises from under ₦100 million to ₦7.4 billion
One of the strongest indicators of the reform’s impact, according to ESIRS, is the sharp increase in revenue generated from the informal sector.
Nnamani said the state, which previously earned less than ₦100 million annually from that segment, generated ₦7.4 billion in the last year alone following the implementation of the harmonised system.
The increase reflects both improved compliance and the reduction of informal leakages that had weakened collection efficiency under the fragmented tax regime.
Digital collection system drives compliance
Central to the reform is a technology-based one-stop payment platform powered by e-ticketing, which has been operational in the state for two years.
The system enables seamless payment and automated distribution of revenue among relevant agencies without requiring separate manual remittances.
Nnamani said the same digital framework has also transformed tax collection in the transport sector, particularly among commercial tricycle operators who previously paid multiple levies across different local government jurisdictions.
Under the revised model, operators now make a single payment, which is automatically split among beneficiaries through the electronic platform at the close of each day.
This, he said, has ended the practice of transport workers being stopped repeatedly by revenue collectors in different parts of the state.
Formal sector now under consolidated notice framework
Beyond traders and transport operators, the state government has also extended harmonisation into the formal business sector.
Nnamani said businesses now receive a consolidated annual demand notice covering all applicable taxes, including waste charges, land-related fees, and business premises levies.
The objective, he noted, is to reduce disruption to businesses and create a clearer, more transparent tax environment.
Enforcement to tighten as registration becomes mandatory
The ESIRS chairman also signalled stricter enforcement ahead, stating that business registration would soon become compulsory for all operators in the state, regardless of size.
He stressed that informal businesses must now be captured within the state’s tax database as part of efforts to strengthen planning, traceability, and compliance monitoring.
At the event, tax expert Mark Abani warned that non-compliance could attract penalties, including fines, surcharge payments, and possible prosecution.
He added that defaulters may face an additional 10 per cent charge on unpaid tax liabilities, alongside accrued interest, while authorities retain powers to inspect premises and seize assets where necessary.
The new framework marks a significant step in Enugu’s broader transition toward a data-driven and technology-led tax administration system, with officials arguing that the approach will reduce harassment, improve taxpayer confidence, and strengthen long-term revenue sustainability.
