Enugu State’s Infrastructure and IGR Wins Signal a New Model for Subnational Competitiveness in Nigeria
The Report
As reported by BusinessDay journalist [Reporter Name not provided], Enugu State received two major honours at the BusinessDay States Competitiveness and Investment Readiness Awards (SCIRA) 2025, held in Abuja on Thursday night. The state was awarded the Infrastructure Development Competitiveness Award and the Outstanding Performance in Internally Generated Revenue (IGR) Award.
Governor Peter Mbah was represented at the ceremony by the Commissioner for Works and Infrastructure, Ben Okoh, and the Executive Chairman of the Enugu State Internal Revenue Service (ESIRS), Mr Emmanuel Nnamani. The Publisher/CEO of BusinessDay Media Limited praised Governor Mbah’s approach to public infrastructure, noting that the governor had not discarded existing projects but rather completed and improved upon them. The publisher specifically highlighted the quality of roads in both urban and rural areas, and questioned the source of funding for such extensive development.
“Two things that struck me because I had to ask a question, where does he get the money? I saw good roads, and I don’t mean good roads in the major highways, I mean good roads even in the communities that are far away from the prime areas of the state capital, Enugu.”
Commissioner Okoh detailed the administration’s achievements, including the completion of the long-abandoned International Conference Centre, the revival of Hotel Presidential and Nigergas Company, the construction of over 600 km of roads, 267 smart schools, and 260 primary healthcare centres. He also announced the development of a new Enugu City spanning 10,000 hectares, larger than the Federal Capital Territory (Abuja), with integrated underground infrastructure. The state’s IGR has grown from N26.8 billion in 2022 to N406.7 billion in 2025, with tax revenue accounting for only 12.6% of the 2025 total.
WANA Regional Analysis
The recognition of Enugu State at the SCIRA 2025 awards carries significance well beyond a single state’s achievement. For West Africa, where subnational governments often struggle with fiscal sustainability and infrastructure delivery, Enugu’s trajectory offers a potential template for reform-minded administrations across the region.
Fiscal Innovation and IGR Growth: The exponential growth in Enugu’s IGR—from N26.8 billion to N406.7 billion in three years—is remarkable not merely for the scale but for the composition. With tax revenue contributing only 12.6% of the 2025 IGR, the state appears to have diversified its revenue base through non-tax sources, including technology-driven efficiencies and improved collection mechanisms. For ECOWAS member states grappling with low tax-to-GDP ratios, this model suggests that subnational governments can achieve fiscal autonomy without necessarily imposing new tax burdens. The implication for regional economic integration is clear: states with stronger IGR are better positioned to invest in infrastructure that facilitates cross-border trade and investment.
Infrastructure as a Competitiveness Driver: The award for infrastructure development underscores a growing recognition in West Africa that physical infrastructure is a primary determinant of investment readiness. Enugu’s focus on completing inherited projects—rather than starting new ones—reflects a governance discipline that is often absent in the region, where political cycles frequently lead to abandoned projects. The new Enugu City project, with its underground utilities and integrated planning, mirrors the development model of Abuja but at a state level. This could set a precedent for other Nigerian states and even neighbouring countries seeking to decongest overcrowded capitals or create new economic hubs.
ECOWAS and Subnational Benchmarking: The SCIRA awards themselves represent a form of subnational benchmarking that is still underdeveloped in West Africa. While ECOWAS focuses primarily on national-level harmonisation, the reality is that investment decisions are increasingly made at the city and state level. Enugu’s success may encourage other states and regions to adopt similar performance metrics, potentially leading to a race to the top in governance and infrastructure delivery. For regional bodies like ECOWAS, this could inform a more granular approach to economic integration, where subnational champions are identified and supported.
Political and Governance Implications: Governor Mbah’s background as a private sector operator appears to have influenced his administration’s focus on efficiency and results. This is a trend observed in several West African states where technocrats have been elected to office, bringing a performance-oriented mindset to public administration. The challenge, however, lies in sustainability. The IGR growth, while impressive, must be examined for its reliance on one-off revenues or unsustainable sources. Similarly, the infrastructure boom must be matched by maintenance capacity and economic activity to justify the investment.
Security and Regional Stability: Improved infrastructure and economic opportunity are widely recognised as stabilising factors in regions affected by insecurity. Enugu State, located in Nigeria’s Southeast, has faced its share of security challenges, including separatist agitations and criminality. The administration’s ability to deliver visible development may contribute to social cohesion and reduce the appeal of violent alternatives. For the broader West African region, where the Sahel crisis and coastal insecurity are linked to governance deficits, Enugu’s model offers a counter-narrative: that effective governance can restore confidence and attract investment even in challenging environments.
Regional Backdrop
Enugu State’s recent performance must be viewed against the backdrop of Nigeria’s broader fiscal and infrastructure challenges. Nigeria, as West Africa’s largest economy, has struggled with subnational fiscal sustainability, with many states unable to meet salary obligations without federal allocations. The Federal Capital Territory (Abuja) remains the benchmark for integrated urban development in the country, but its model has rarely been replicated at the state level. Enugu’s new city project, if successfully executed, could become a reference point for urban planning across the region.
Historically, the Eastern Region of Nigeria—of which Enugu was the capital—was known for its entrepreneurial spirit and infrastructural development in the pre-independence and early post-independence era. The revival of assets like Hotel Presidential and Nigergas Company taps into this legacy, suggesting a deliberate strategy to reconnect with the region’s historical economic dynamism.
From a regional policy perspective, the recognition of Enugu by a private sector-led initiative like BusinessDay’s SCIRA highlights the growing role of non-state actors in shaping governance benchmarks. This trend is observable across West Africa, where media organisations, civil society, and business associations are increasingly holding governments accountable through rankings and awards. For WANA’s readership, this signals a shift toward a more data-driven and performance-oriented discourse on governance in the region.
Original Reporting By:
BusinessDay