Poor VAT generation cripples Imo Economy says PDP

DDM News

The People’s Democratic Party PDP has stated that poor VAT Generation is the cause of low productivity and crippled economy..

Lancelot Obiaku, PDP’s spokesman stated this in a Press release of June 5th 2025.

He states: “The Peoples Democratic Party (PDP) in Imo State states that the recently released data on Value Added Tax (VAT) generated by the 36 States of the federation and the FCT for the first quarter of 2025 has confirmed our consistent assertion that Governor Hope Uzodimma’s administration has crippled the State’s economy, stifled businesses and commercial activities, and made the State unattractive to investors.

Imo, placed 35th out of the 36 States in Nigeria contributed the second lowest VAT revenue to the federation’s account with just N2.34 billion, only better than Taraba with N2.33 billion.

This figure, the worst performance in Southern Nigeria, is almost ten times the value of Anambra (N10.73 billion). Ebonyi with N7.43 billion performed more than three times better.

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 knows 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 Uzodimma’s ineffectual leadership.

For example, Imo once thrived as the number one hospitality destination in Nigeria.

Today, however, at least 70% of hotels and entertainment businesses in the State have closed down.

Alarmingly, the State government lacks a coherent economic blueprint to reverse this decline.

How can Imo’s economy improve when the Governor shows no genuine interest in developing the State by not living in the State even as a Governor.

Uzodimma’s refusal to actually provide governance has contributed to the insecurity ravaging the State.

Imo PDP condemns the fact that the State Governor has personally seized control over resources that should serve the people’s needs.

The Governor has stifled the autonomy of ministries, agencies, parastatals, and even the local government system, concentrating their responsibilities to his office without transparency or accountability.

The local government system has been subdued by one greedy man.

Even his “appointed” Local Government Area (LGA) Chairmen lack the resources to make any meaningful impact, as their allocations are controlled and misappropriated 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 LGA allocations 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 truth is that had there been ongoing developmental projects and a formidable economic blueprint, businesses will thrive and the State will attract Foreign Direct Investments, leading to more payments of VAT.

But Imo is subjected to this economic siege by a clueless Governor, and Governor Uzodimma and his cronies should hide their faces in shame.

Imo PDP calls on the him to reduce his greed and free up the State’s economy. Additionally, the Governor must urgently develop a robust economic policy to begin the process of reviving the State’s economy”, the statement read.

DDM News gathered that Governor Uzodinma ‘s absence and regularly travels is making Imo state a ghost state.

The high rising insecurity is another challenge bedeviling the state.

Herdsmen are constantly attacking farmers and villagers leading to poor farm produce and food insecurity.

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