Ekiti State has recorded its highest monthly Internally Generated Revenue (IGR) in history, collecting ₦2.75 billion in June 2026 as reforms centred on voluntary tax compliance, digitalisation and improved taxpayer engagement continue to strengthen the state’s fiscal position.
The record represents a 33.2 percent increase from the ₦2.06 billion generated in June 2025 and reinforces the state’s momentum toward an annual IGR of about ₦31.2 billion if current collection levels are sustained.
Speaking during a press briefing in Ado-Ekiti, Executive Chairman of the Ekiti State Internal Revenue Service (EKIRS), Olaniran Olatona, said the achievement was particularly significant because it came after the agency suspended active tax enforcement measures, including roadblocks and the sealing of business premises, from July 8, 2025.
According to him, the suspension was intended to test whether recent federal tax administration reforms and sustained taxpayer education could encourage voluntary compliance without coercive enforcement.
“The test was simple: would revenue hold under voluntary compliance? The answer is yes,” Olatona said.
The agency disclosed that monthly collections have remained consistently around ₦2.74 billion since April 2026, suggesting that revenue growth is being driven by structural improvements rather than one-off collections or enforcement campaigns.
The state’s performance also reflects a broader upward trend. EKIRS generated ₦27.09 billion in IGR during 2025, a 53.7 percent increase from ₦17.63 billion recorded in 2024. Between January and June 2026, revenue reached ₦15.6 billion, representing a 16 percent increase compared with the corresponding period of 2025.
Olatona expressed confidence that the agency would exceed its new internal target of ₦3 billion in monthly revenue before year-end without introducing new taxes or increasing existing tax rates.
He attributed the sustained growth to automation and digitalisation of tax collection, expansion of the Pay-As-You-Earn (PAYE) tax base, stronger remittances of withholding taxes by corporate organisations and financial institutions, improved taxpayer enumeration, and enhanced reconciliation of collections across Ministries, Departments and Agencies (MDAs).
PAYE remains the largest revenue source, accounting for about 63 percent of total collections.
Despite the strong performance, Olatona identified the informal sector as the state’s next major revenue opportunity. Although it contributes significantly to economic activity, taxes and levies collected from the sector totalled only ₦1.46 billion in 2025.
Rather than intensifying enforcement, EKIRS plans to improve compliance through taxpayer registration, proper assessments and continued stakeholder engagement.
The agency is also collaborating with MDAs and local government councils to implement a central billing system designed to eliminate multiple taxation, simplify payments and improve transparency. Officials have also studied Enugu State’s integrated revenue collection model as part of the reform process.
Addressing recent concerns over tax assessment notices, Olatona clarified that the notifications issued to taxpayers for the 2024 and 2025 tax years were not enforcement actions but statutory assessments under the Nigeria Tax Administration Act, 2025. He noted that taxpayers have the legal right to file objections within 30 days, while tax authorities must respond within 90 days.
He reiterated that EKIRS remains committed to building a transparent, taxpayer-friendly system that supports business growth while strengthening the state’s revenue base. The agency believes sustained voluntary compliance, backed by technology and public trust, will provide a more durable foundation for Ekiti’s fiscal sustainability than reliance on aggressive enforcement.
