PDP Explodes: Uzodinma’s VAT Policy Wrecking Imo’s Economy

The Imo State chapter of the People’s Democratic Party (PDP) has accused the APC-led administration under Governor Hope Uzodinma of crippling the state’s economy.

In a statement released on Thursday in Owerri, the PDP’s Publicity Secretary, Lancelot Obiaku, cited recently published data on Value Added Tax (VAT) generated by Nigeria’s 36 states and the FCT for the first quarter of 2025. The figures, according to the party, validate their longstanding position that Governor Uzodinma’s government has strangled business activities, discouraged investment, and driven commerce to the brink of collapse.

According to the report, Imo State ranked 35th out of 36 states, contributing only ₦2.34 billion in VAT—barely ahead of Taraba, which generated ₦2.33 billion. PDP described this as a disgraceful showing, especially given Imo’s place in Southern Nigeria. In contrast, Anambra generated ₦10.73 billion, nearly ten times more, while Ebonyi recorded ₦7.43 billion, over three times higher than Imo.

The party emphasized that VAT, a consumption tax collected from goods and services, is a key indicator of economic vibrancy and commercial strength, as it reflects productivity and business activity levels in a state.

“The poor VAT returns are a direct reflection of the decaying business environment in Imo under Uzodinma’s watch,” Obiaku stated. “Businesses are shutting down in droves, and investment interest in the state has plummeted.”

He further lamented that about 70% of hotels and entertainment establishments in the state have closed, a troubling sign of economic distress.

The PDP attributed this decline to the lack of a coherent economic strategy, adding that Governor Uzodinma’s absence from the state and failure to provide effective leadership have worsened insecurity and discouraged growth.

“How can Imo’s economy grow when the governor refuses to live in the state or show genuine interest in its development?” Obiaku queried. “The governor has centralised control of resources and suffocated the autonomy of government institutions, including ministries, agencies, and even the local government system. There’s no transparency or accountability.”

The party also criticised the governor for allegedly diverting local government funds, stating that LGA chairmen have been rendered powerless due to lack of access to their constitutionally allocated resources.

Between January 2024 and May 2025, Imo received an estimated ₦162 billion in LGA allocations, plus ₦350 billion in the preceding years—a total of over ₦500 billion in five years. Yet, the PDP said, there are no tangible, economy-boosting projects to show for it.