The Abia State Government has dismissed attempts to portray the state as economically stagnant following the release of the National Bureau of Statistics (NBS) VAT report for January to June 2026, which ranked Abia last in VAT collection.
In a statement issued on Wednesday, the Chief Press Secretary to Governor Alex Otti, Ctz. Ukoha Njoku Ukoha, argued that the VAT figures were being misrepresented to create a false impression that the state had recorded no economic progress under the current administration.
According to him, VAT collection is only one component of revenue allocation and should not be used as the sole measure of a state’s economic performance. He explained that the NBS data reflects VAT remitted by companies based on where they are registered, rather than where goods are produced or consumed.
The government noted that states hosting the headquarters of major corporations, such as Lagos, the Federal Capital Territory and Rivers, naturally record higher VAT remittances, while manufacturing and commercial hubs with largely informal economies, including Abia, appear lower on the rankings.
The statement further maintained that a significant portion of Abia’s economy remains informal, particularly in Aba’s manufacturing and trading sectors, where many businesses are yet to be fully integrated into the formal tax system.
The government highlighted ongoing efforts to address the situation through the Abia State Internal Revenue Service (ABIRS) Formalisation and Digitalisation Drive, which aims to onboard 200,000 small and medium-scale enterprises into the tax net by December 2026.
The state also said it had established a Joint VAT Monitoring Taskforce with the Federal Inland Revenue Service (FIRS) to ensure VAT generated from commercial activities in Abia is properly remitted to the state.
Defending Governor Alex Otti’s economic policies, the government cited the clearance of salary and pension arrears, implementation of the ₦70,000 minimum wage, recruitment of thousands of teachers and healthcare workers, and investments in roads, markets and power infrastructure as indicators of economic growth.
The statement stressed that Abia’s economy should be measured by productivity, employment, infrastructure development and business activities rather than VAT remittance figures alone, insisting that thriving markets, manufacturing clusters and improved workers’ welfare are evidence of the state’s economic transformation.
