Ekiti posts 33% jump in IGR, credits voluntary tax payments

The Ekiti State Government has reiterated its resolve to maintain a transparent and equitable tax system aimed at strengthening the state’s economy while encouraging business growth and voluntary compliance.

Chairman of the Ekiti State Internal Revenue Service (EKIRS), Mr Olaniran Olatona, said in Ado Ekiti on Saturday that the state had adopted a sustainable revenue model that relied on taxpayers willingly meeting their obligations rather than coercive enforcement.

He praised residents for embracing voluntary tax payment, noting that the approach had helped improve the state’s Internally Generated Revenue despite the suspension of enforcement measures such as roadblocks and the closure of business premises since July 2025.

According to Olatona, the state’s revenue performance has continued to improve as economic reforms introduced at both federal and state levels begin to yield positive results.

He disclosed that Ekiti generated N2.75 billion in Internally Generated Revenue in June 2026, compared with N2.06 billion recorded in the corresponding month of 2025, representing an increase of 33.2 per cent.

“Collections have held a stable N2.74 billion plateau since April 2026,” he said.

The EKIRS chairman attributed the improved performance to the agency’s increasing reliance on technology, including automated and digital tax collection systems that have expanded payment options, reduced leakages and brought more taxpayers into the formal system.

He also cited improvements in Pay-As-You-Earn collections and stronger compliance with withholding tax obligations.

He said, “EKIRS remains committed to building a fair and sustainable revenue system that supports economic growth while ensuring every taxpayer contributes an equitable share to the development of Ekiti State.”

Reaffirming the agency’s taxpayer-focused approach, Olatona stressed that the objective was to encourage compliance rather than penalise businesses.

“Our responsibility is not to punish taxpayers but to ensure fairness. We are more interested in helping businesses grow because thriving businesses ultimately translate into sustainable revenue for government,” he said.

He expressed optimism that the agency would exceed its internal monthly revenue target of more than N3 billion before the end of 2026 through wider taxpayer participation rather than higher tax rates.

According to him, “EKIRS’ objective is to widen the tax base by bringing more eligible taxpayers into the system, rather than raising tax rates or introducing new taxes. The Service will continue deploying technology and data intelligence to identify previously untaxed incomes, while complying with relevant data protection regulations.”

Olatona also disclosed that EKIRS was working with Ministries, Departments and Agencies as well as local government councils to establish a central billing platform that would eliminate multiple taxation and make tax payments easier.

Addressing recent protests over alleged tax increases, he said taxpayers should have taken advantage of the legal provisions available for disputing tax assessments instead of resorting to demonstrations.

He clarified that the recently issued Notices of Assessment were simply notifications of tax liabilities for the 2024 and 2025 tax years and were not enforcement actions.

The EKIRS boss explained that the Nigeria Tax Administration Act, 2025 gives taxpayers the right to challenge assessments by filing written objections within 30 days of receiving a notice, while tax authorities are required to respond within 90 days.

He assured residents that the agency remained willing to review genuine complaints, particularly where taxpayers encountered procedural difficulties.

Olatona added that EKIRS had intensified public enlightenment campaigns through engagements with market associations, landlords’ groups, religious organisations and other stakeholders to improve tax awareness and encourage voluntary compliance.

He also advised market associations to engage tax professionals to assist members in understanding tax laws, resolving disputes and maintaining accurate financial records.