The Imo State chapter of the Peoples Democratic Party (PDP) has condemned the state’s poor showing in the recently released Value Added Tax (VAT) data for the first quarter of 2025, which ranked Imo 35th out of 36 states, describing it as evidence of a lack of effective economic policies.
In a press statement, the PDP spokesperson, Lancelot Obiaku, said the latest figures confirm the party’s previous claims that Governor Hope Uzodinma’s administration has weakened the state’s economy and hindered business and commercial activities through ineffective policies, making Imo unattractive to investors.
Obiaku highlighted that Imo contributed only N2.34 billion in VAT revenue to the federation account, the second-lowest among all states, narrowly ahead of Taraba State, which contributed N2.33 billion.
He expressed disbelief that Imo performed worse than other Southern states, trailing far behind Anambra State, which generated N10.73 billion, and Ebonyi State, with N7.43 billion.
“VAT is a consumption tax levied on goods and services at every stage of production or distribution, paid by consumers but collected by businesses and remitted to the government through the Federal Inland Revenue Service (FIRS). The VAT ratio reflects the level of economic activity and commercial vitality of states and correlates directly with productivity and economic health,” Obiaku explained.
“The PDP in Imo State believes this poor performance clearly indicates the dire state of the local business environment and economy. Many businesses are closing down, and the state has failed to attract meaningful investment under Governor Uzodinma’s ineffective leadership,” the statement added.
Obiaku recalled that Imo was once the leading hospitality hub in Nigeria but lamented that insecurity has forced 70% of hotels and entertainment venues to shut down.
He expressed growing concern over the state government’s lack of a coherent economic plan to reverse this decline.
The party further accused Governor Uzodinma of showing little commitment to improving the economy, citing his failure to reside in the state to effectively oversee governance.
“How can the economy improve when the governor shows no genuine interest in the state’s development by choosing not to live in Imo? His absence has contributed to the worsening insecurity,” the statement alleged.
The PDP also criticized the governor for allegedly controlling resources meant for public welfare and undermining the autonomy of ministries, agencies, parastatals, and local government funds.
“The local government system has been weakened. Even the appointed LGA chairmen lack the necessary resources to make an impact because the state government controls their allocations.
“Despite receiving an average of N6.5 billion monthly in LGA allocations between January and September 2024, and N8 billion monthly from September 2024 to May 2025—totaling N162 billion in the past 16 months alone—and about N350 billion in previous years, totaling over N500 billion in the last five years, Imo has no significant economy-boosting projects to show for it,” the statement said.
The PDP insisted that if there were real developmental projects and a strong economic plan, businesses would be thriving, foreign investments would be flowing in, and VAT revenues would have increased.
Obiaku concluded by urging the governor to urgently formulate a solid economic policy to start reviving Imo’s economy.
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