The Chairman of the Enugu State Internal Revenue Service (ESIRS), Mr Emmanuel Nnamani, Internal Revenue Service (ESIRS), Mr Emmanuel Nnamani, has said that 99 per cent of the informal sector in the state does not remit taxes to the government.
Nnamani made this known during a media briefing on Thursday in Enugu while reacting to reports on social media that the state government was imposing taxes outside the provisions of the law.
He dismissed the allegations of arbitrary levies, stating that all taxes and revenue collections in Enugu State were in accordance with legal frameworks.
Describing the social media reports on the state’s tax regime as “false and misleading,” Nnamani clarified the government’s tax policies and reiterated its commitment to legality and transparency.
The chairman explained that tax administration in the state was primarily guided by the Personal Income Tax Act (as amended), which empowers ESIRS to collect personal income tax through two principal means: Pay-As-You-Earn (PAYE) for those in formal employment, and Direct Assessment for individuals in the informal sector.
He noted that compliance among formal sector workers was generally seamless.
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However, he admitted that enforcement mechanisms, including legal action, were sometimes necessary to ensure compliance from other categories of taxpayers.
“One of the most critical challenges has been transitioning the informal sector, particularly market traders and transport operators, into the formal tax net.
“Upon assumption of office, it was discovered that 99 per cent of informal sector operators were not remitting taxes to the state, largely due to the interference of non-state actors who collected revenues informally.
“To address this, the state introduced a consolidated ₦36,000 annual levy for market traders. This covers various charges, including Environmental Sanitation (ESWAMA), signage fees, local government stallage, and business premises levies.
“Once this amount is paid between January and March, the trader owes nothing else for the rest of the year. However, after March 31st, defaulters become subject to enforcement action,” Nnamani explained.
He added that street-based vendors operating outside formal market structures are expected to pay ₦30,000 annually, with ESWAMA charges paid separately.
“Transport operators such as Okada riders, Keke drivers, minibuses, tankers, and trucks are under a daily ticketing system,” he said.
Nnamani further noted that Enugu’s tax regime is not an exception but is consistent with federal laws implemented across all states.
“We are not here to compete with other states. Our duty is to apply the law fairly and ensure that our people prosper,” he concluded.
