VAT: Uzodinma crippling Imo economy — PDP

The People’s Democratic Party (PDP) in Imo State has blamed the APC-led government under Governor Hope Uzodimma for crippling economy of the state.

In a statement issued on Thursday in Owerri by the PDP Publicity Secretary Imo State, Lancelot Obiaku said that the recently released data on Value Added Tax (VAT) generated by the 36 tates of the federation and the FCT for the first quarter of 2025 has confirmed their consistent assertion that Governor Hope Uzodimma’s administration has stifled businesses and commercial activities, and made the State unattractive to investors.

The party regretted that 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.

The party describing the state as the worst performance in Southern Nigeria, said that it is almost ten times the value of Anambra (N10.73 billion). Ebonyi with N7.43 billion performed more than three times better.

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They observed that 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).

According to PDP, VAT ratio, reflects the economic activity and commercial strength of States and is directly proportional to the productivity level and health of an economy.

PDP said that they are not in doubt that Imo’s dismal performance reflects the comatose state of its business environment and overall economy.

The publicity secretary said that businesses are shutting down, while the state has failed to attract meaningful investments under Uzodinma.

He said: “Today, however, at least 70% of hotels and entertainment businesses in the State have closed down.”

The party blamed the present administration in the state for lack of a coherent economic blueprint to reverse this decline.

He said: “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.

“Governor Uzodinma 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 party expressed regrest that even the Local Government Area (LGA) chairmen lack the resources to make any meaningful impact, as their allocations are controlled and misappropriated

He said: “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 party said that if there been ongoing developmental projects and a formidable economic blueprint, businesses will thrive and the state will attract Foreign Direct Investments (FDI), leading to more payments of VAT.

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