Anambra State has achieved a remarkable milestone, with its Internally Generated Revenue (IGR) increasing by over 100% in just one year. The state’s monthly IGR surged from ₦2.2 billion to ₦5.2 billion, a growth that signals a significant transformation in the state’s financial landscape.
Amara Oyeka, the Senior Special Assistant to Governor Chukwuma Soludo on IGR, made the announcement during the presentation and validation of a research study conducted across 21 major markets in the state’s three senatorial zones.
The research is part of the Tax for Service Project, a collaboration between the Tax Justice and Governance Platform (TJ&GP) and the Civil Society Legislative Advocacy Centre (CISLAC), with support from Oxfam Nigeria.
Oyeka’s revelation was met with optimism, but he also acknowledged the challenges that still plague the system. Despite the impressive revenue growth, he highlighted serious concerns about tax evasion and the mismanagement of collected funds.
“The reality is that many of our affluent citizens evade taxes, and more than 50% of the collected revenue is siphoned off into private hands,” Oyeka explained. “We have a situation where revenue collectors are richer than the government.”
His comments shed light on a deep-rooted issue that has long hindered Anambra’s financial progress. He pointed out that many of the individuals who tarnish the government’s image are not even employed by the state, further complicating efforts to combat corruption and inefficiency.
“We are working harder than other states, but the system is plagued with leakages,” Oyeka admitted. “We are determined to fix this, and we need everyone to come together to make it happen.”
The state’s IGR growth is undoubtedly an achievement, but Oyeka’s words served as a reminder that much work remains to be done to ensure that Anambra maximises its full economic potential. He stressed that with higher revenue comes greater power for citizens to demand better public services.
“The higher the revenue, the greater the citizens’ power to demand public goods,” he added.
The Tax for Service Project is designed to bridge the gap between taxpayers and service providers, with the goal of fostering transparency, accountability, and trust in governance. Ugochi Ehiahuruike, the Executive Director of the Social and Integral Development Centre (SIDEC), which hosts the Tax Justice and Governance Platform in Anambra, explained that the project’s core objective is to ensure that taxpayers’ contributions are effectively translated into public services.
“This research provides a foundation for strategic interventions aimed at improving tax compliance and public service outcomes,” Ehiahuruike said. “We believe that with better transparency, we can foster greater trust between citizens and the government.”
Anambra’s tax system has faced significant hurdles, and stakeholders have repeatedly called for reform. Dr. Greg Ezeilo, Chairman of the Anambra State Board of Internal Revenue Service (AiRS), echoed Oyeka’s concerns, stressing the disparity between the state’s economic potential and its actual revenue generation.
“The financial worth of markets in Anambra is immense,” Ezeilo noted, “yet government revenue does not reflect this reality.” He pointed to the state’s vibrant markets, from Onitsha to Awka, which are crucial to the local economy but have not been fully leveraged to support the government’s revenue needs.
“Markets are the oil wells of this state,” Ezeilo continued. “We must tap into this resource to fund our public services effectively. The potential is there; what we need is better coordination and a more efficient system.”
The importance of Anambra’s markets cannot be overstated. They are vital to the state’s economy, yet the government has struggled to capture the full economic value that they represent. While these markets generate significant income, much of it remains outside the tax net, often due to ineffective enforcement and widespread evasion.
Governor Soludo’s administration has shown a strong commitment to reforming Anambra’s revenue collection system. By working closely with civil society groups and other stakeholders, the state is hoping to improve the transparency and accountability of its financial operations.
Oyeka’s call for collaboration resonates with the growing desire among citizens for better governance. “We cannot continue to allow these leakages to undermine the state’s potential,” he said. “The government must ensure that every naira collected is properly accounted for and used for the benefit of the people.”
The state’s recent success in boosting IGR is undoubtedly a positive step forward, but it is also a wake-up call for the government and its citizens to address the issues of tax evasion and corruption that still exist within the system. The message is clear: Anambra’s economic growth is dependent on a transparent, efficient, and accountable tax system.
As the state looks to build on this achievement, there are hopes that the Tax for Service Project will serve as a model for future reforms. By fostering stronger relationships between taxpayers, service providers, and the government, Anambra can continue to increase its IGR and create a more equitable system for all.
“It’s time for Anambra to fully realise its economic potential,” Oyeka said. “We’ve made progress, but there’s more work to be done. Together, we can build a system that works for everyone.”