Abia Govt to capture households, businesses into formal tax net, targets N120 billion IGR by 2025

Abia State is intensifying efforts to formalize its tax system with an ambitious goal: to generate ₦120 billion in internally generated revenue (IGR) by the end of 2025. This target represents a significant increase from the ₦39 billion achieved in the previous year, marking a 207% rise .

Key Initiatives Driving the Revenue Target

1. Digital Tax System Implementation

Governor Alex Otti launched a new digital tax platform aimed at eliminating fraud and intermediaries in revenue collection. The system allows transporters and traders to pay taxes through USSD codes and digital wallets, offering flexible payment options—daily, weekly, or monthly. Additionally, a free medical insurance scheme for commercial vehicle operators has been integrated into the tax system .

2. Withholding Tax Payment Platform (WHT-P) The Abia State Internal Revenue Service (AIRS) introduced the WHT-P, an online platform enabling businesses to register, validate their Abia State Social Identity Number (ABSSIN), upload withholding tax schedules, and make secure payments at any bank. This initiative aims to enhance tax compliance and traceability 3. Strategic Revisions to Revenue Targets

Initially, the state’s IGR target for 2025 was set at ₦100.6 billion. However, following the success of surpassing the 2024 target, the government revised the goal to ₦120 billion. This adjustment reflects confidence in the effectiveness of the new tax reforms .

Broader Economic Implications

Achieving the ₦120 billion IGR target would significantly bolster Abia State’s fiscal capacity, enabling increased investments in infrastructure, education, healthcare, and other essential services. Governor Otti emphasized that a robust IGR is crucial for sustaining developmental programs and reducing reliance on federal allocations .

As Abia continues to modernize its tax system and enhance revenue collection mechanisms, the state’s approach may serve as a model for other regions seeking to strengthen their financial independence and promote sustainable development.