Imo PDP Slams Uzodinma Administration Over Low VAT Generation

– Says, Govt Ineptitude Crippling Economic Growth, Development

The Peoples Democratic Party (PDP) Imo State chapter has said that the data on collection of the Value Added Tax (VAT) released recently by the Federal Accounts Allocation Committee (FAAC) has further thrown .light on the poor, inept and abysmal performance of the Hope Uzodinma-led All Progressive Congress administration in the State that has crippled the economy, destroyed the structures of governance and impoverished the people with it’s purposeless, ill-conceived and anti-people programs and policies.

The State Publicity Secretary of Imo PDP, Lancelot Obiaku, in a release he issued, maintained that the Uzodinma administration is in dire need of a well articulated economic blue print of action that will be implemented by experienced and knowledgeable technocrats, and human resource managers who are committed to the development of the state and the enhancement of the peoples’ welfare as opposed to the current trend of purposeless and trial by error administration.

The release expressed disappointment that Imo came a distant 35^th position out of the 36 states of the federation and the Federal Capital Territory FCT, followed by only Taraba State as the 36th.

The release reads in part, “ 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 is not doubt 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”.