Executive Chairman of the Ekiti State Internal Revenue Service (EKIRS), Olaniran Olatona, has disclosed that the state’s Internally Generated Revenue (IGR) has continued to record unprecedented growth despite the suspension of tax enforcement, attributing the development to improved voluntary compliance, digital tax administration and a broader tax base.
Olatona said the state had successfully demonstrated that sustainable revenue generation could be achieved through taxpayers’ trust rather than coercion, revealing that Ekiti recorded its highest-ever monthly IGR of ₦2.75 billion in June 2026.
Addressing newsmen in Ado-Ekiti, the EKIRS boss said the performance had surpassed initial fears that the implementation of the new Federal Tax Administration laws and the suspension of enforcement activities would negatively impact the state’s revenue profile.
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According to him, the service deliberately suspended active tax enforcement from July 8, 2025, to assess whether the reforms introduced under the new tax regime would encourage voluntary compliance.
“The test was simple: would revenue hold under voluntary compliance? The answer is yes,” he said.
Olatona noted that 13 months into the enforcement pause, Ekiti was collecting revenue at record levels and remained ahead of its budget projections.
He disclosed that EKIRS generated ₦27.09 billion in 2025, representing an increase of 53.7 per cent over the ₦17.63 billion realised in 2024.
According to him, even after enforcement activities were suspended in the second half of 2025, collections continued to rise, with the state generating ₦13.65 billion, about ₦205 million higher than the ₦13.44 billion realised during the first half of the year when enforcement was fully operational.
Giving an update on the current year’s performance, Olatona said the first half of 2026 yielded ₦15.60 billion, representing a 16 per cent increase over the corresponding period in 2025.
He added that revenue collections had consistently hovered around ₦2.74 billion monthly since April 2026, a trend which, if sustained, would see the state realise approximately ₦31.2 billion by the end of the year.
The EKIRS chairman attributed the steady growth to a combination of structural reforms rather than aggressive tax enforcement.
According to him, the introduction of multiple digital payment platforms has significantly reduced revenue leakages while making tax payment easier for residents.
He also identified the expansion of the Pay-As-You-Earn (PAYE) tax base across both public and private sectors, improved remittances of withholding taxes by financial institutions and corporate organisations, years of taxpayer enumeration, stronger compliance culture, and improved reconciliation of revenues across Ministries, Departments and Agencies (MDAs) as major drivers of the improved performance.
Olatona explained that PAYE remained the state’s biggest revenue source, accounting for about 63 per cent of total collections.
However, he acknowledged that the informal sector remained significantly under-taxed despite its size and contribution to the economy.
He disclosed that taxes and levies generated from the informal sector amounted to ₦1.46 billion in 2025, representing only a small fraction of the state’s ₦27 billion IGR.
The breakdown, he said, included ₦1.23 billion from Direct Assessment, ₦59.54 million from commercial motorcycle operators, ₦57.5 million from haulage operations, ₦52.58 million from consumption tax, ₦51.45 million from business premises registration and artisan licensing, among other smaller revenue streams.
Describing the informal economy as the next frontier for revenue growth, Olatona assured residents that the service would pursue wider tax registration and assessment through fairness rather than intimidation.
“The informal sector remains under-taxed relative to its size. That is not a weakness in what we have built; it is the next frontier, and we intend to bring it in fairly through registration and assessment, not harassment,” he said.
The EKIRS chairman also addressed the recent controversy surrounding notices of tax assessment served on informal sector operators, insisting that the notices related strictly to the 2025 tax year and were issued in line with the provisions of the Nigeria Tax Administration Act, 2025.
He explained that the law empowers every taxpayer who disagrees with an assessment to file a formal notice of objection within 30 days, after which the tax authority is expected to review the assessment and respond within 90 days.
According to him, taxpayers dissatisfied with their assessments should utilise the legal dispute resolution process instead of resorting to protests and social media campaigns.
“Our responsibility is not to punish taxpayers but to ensure fairness. Where there is verifiable evidence that an assessment is excessive, necessary adjustments will be made. We are more interested in helping businesses grow, because thriving businesses ultimately translate into sustainable revenue for government.
“We are surprised that many of the affected taxpayers failed to take advantage of the lawful channels provided by the Act to challenge their assessments but instead chose protests and blackmail on social media,” he said.
Olatona expressed appreciation to the Ewi of Ado-Ekiti, Oba Rufus Adejugbe, for intervening in the matter and helping to douse the tension, assuring that all genuine grievances arising from the notices of assessment would be resolved amicably without undermining the law.
He reaffirmed EKIRS’ commitment to transparent tax administration that supports business growth while ensuring that every eligible taxpayer contributes fairly to the development of the state.
The revenue chief commended Governor Biodun Oyebanji for providing the agency with the tools and operational independence required to discharge its responsibilities effectively.
He also acknowledged the support of the Commissioner for Finance, Akin Oyebode, members of the State Executive Council, the House of Assembly, the EKIRS Board, management and staff for their contributions to the agency’s achievements.
Olatona expressed optimism that the ongoing tax reforms at both federal and state levels would continue to strengthen the economy, broaden the tax net and guarantee sustainable development for Ekiti.