Imo’s poor VAT performance sign of irrelevant economic policies – PDP

The Imo State chapter of the Peoples Democratic Party, PDP, has described the state’s poor performance in the recently released data on Value Added Tax, VAT, generated by the 36 states of the federation and the Federal Capital Territory, FCT, for the first quarter of 2025—which placed the state 35th out of 36 states—as a sign of a state lacking relevant economic policies.

This was stated in a press release issued by the spokesperson of the party, Lancelot Obiaku, who said that the recent statistics confirmed its earlier assertion that Governor Hope Uzodinma’s administration has crippled the state’s economy and stifled businesses and commercial activities through poor economic policies, which, he stated, have rendered the state unattractive to investors.

The PDP spokesperson pointed out that the state, according to the recent figures, contributed the second-lowest VAT revenue to the federation account with just N2.34 billion, only ahead of Taraba State, which contributed N2.33 billion.

He hinted that it is unbelievable the state performed worse among other states in Southern Nigeria and fell far behind Anambra State with N10.73 billion and Ebonyi State with N7.43 billion.

“To be clear, VAT is a consumption tax levied on goods and services at each stage of production or distribution, and is paid by consumers but collected by businesses and remitted to the Government through the Federal Inland Revenue Service, FIRS. VAT ratio, therefore, reflects the economic activity and commercial strength of states and is directly proportional to the productivity level and health of an economy.

“Imo State PDP is not doubting that Imo’s dismal performance reflects the comatose state of its business environment and overall economy. Nothing can better mirror the state’s low productivity. Currently, businesses are shutting down, and the state has failed to attract meaningful investments under Governor Uzodinma’s ineffectual leadership,” the statement informed.

Obiaku stipulated that there was a time the state thrived as the number one hospitality destination in Nigeria, but regretted that at present, 70 per cent of hotels and entertainment businesses in the state have closed down owing to insecurity.

He added that it is becoming more worrisome, given that the state government lacks what he termed a coherent economic blueprint to reverse the decline.

The party noted in the press statement that there is no serious commitment on the part of the state government to improve the state’s economy, as it accused Uzodinma of not residing in the state to closely monitor his administration.

“How can the state economy improve when the Governor shows no genuine interest in developing the state by not living in the state even as a Governor. Uzodinma’s refusal to actually provide governance has contributed to the insecurity ravaging the state,” the statement alleged.

Imo PDP echoed its condemnation of the fact that the state governor has allegedly seized control of resources that should serve the people’s needs, and also accused him of stifling the autonomy of ministries, agencies, parastatals, and LGA funds.

“The local government system has been subdued. Even his appointed LGA chairmen lack the resources to make any meaningful impact, as their allocations are controlled by the state government.

“Despite receiving an average of N6.5 billion monthly as LGA allocations between January and September 2024, and N8 billion monthly from September 2024 to May 2025—totalling N162 billion in the last 16 months alone—plus about N350 billion in previous months, amounting to over N500 billion in the last five years, Imo cannot boast of meaningful economy-stimulating projects,” the statement submitted.

PDP maintained that if there were existing developmental projects and a formidable economic blueprint, businesses would have thrived, foreign direct investments would have been attracted, and this could have led to an improvement in VAT remittances.

Obiaku asserted that PDP is using this medium to urge the governor to urgently develop a robust economic policy to begin the process of reviving the state’s economy.

Imo’s poor VAT performance sign of irrelevant economic policies – PDP