The Peoples Democratic Party, Imo State Chapter, has raised concerns over the recently released Value Added Tax data, claiming that it validates the party’s position on the deteriorating economic situation in the state under Governor Hope Uzodinma’s leadership.
In a statement issued by the party’s state publicity secretary, Lancelot Obiaku, the PDP alleged that Governor Uzodinma’s administration has made Imo “unattractive to investors.”
The party pointed to the state’s dismal VAT performance, with Imo generating the lowest VAT revenue across the entire Federation.
According to the latest data, Imo generated only N235.41 million in VAT revenue, which the PDP described as “paltry” compared to other states. The party noted that the second lowest-performing state, Zamfara, generated N432.80 million, nearly double Imo’s revenue. Other southeastern states also outperformed Imo, with Abia generating three times more, Ebonyi almost ten times more, and Anambra recording twenty times the VAT revenue of Imo.
The PDP further highlighted that Imo’s VAT contribution was just 0.2% of Lagos’ VAT revenue, calling the disparity “embarrassing.” The party emphasized that VAT is a key indicator of an economy’s productivity and health, and Imo’s poor performance reflects a struggling business environment and an overall weak economy.
Additionally, the PDP criticized the lack of a coherent economic strategy to address the state’s decline, arguing that the absence of a clear economic blueprint reflects the administration’s failure to reverse the state’s ongoing economic challenges.
“To illustrate the dire state of Imo’s economy, the State generated the lowest VAT revenue in the entire Federation, with a paltry N235.41 million.
“This amount is almost half of what the second worst-performing State, Zamfara, generated (N432.80 million).
“Before they blame it on insecurity…it is worth noting that the second-worst-performing State in the Southeast (Abia) generated three times more, while Ebonyi performed nearly ten times better, and Anambra recorded twenty times Imo’s VAT figure,” the party said.
It continued “To be clear, VAT, a consumption tax levied on goods and services at each stage of production or distribution, is paid by consumers but collected by businesses and remitted to the government through the Federal Inland Revenue Service (FIRS).
“VAT ratio, therefore, is directly proportional to the productivity level and health of an economy.
“We are not in doubt that Imo’s dismal performance reflects the comatose state of its business environment and overall economy. Nothing can better mirror the state’s zero productivity.”
