APC Abia Blasts Otti Over Bottom VAT Ranking
The All Progressives Congress (APC) in Abia State has sharply criticised Governor Alex Otti's administration after a National Bureau of Statistics (NBS) report on Value Added Tax (VAT) collections for the first half of 2026 placed Abia at the bottom of all 36 states and the Federal Capital Territory combined. In a press statement signed by the party's Publicity Secretary, Uche Aguoru, the APC described the 37th-place ranking as proof that the government's much-publicised economic transformation agenda is more performance than substance.
VAT as a Measure of Economic Activity
VAT is collected incrementally across every stage of the supply chain and is widely regarded as a reliable barometer of commercial activity and consumer spending within a state. The APC argued that a government actively promoting an investor-friendly environment and a so-called "New Abia" narrative could not credibly justify occupying last place on this particular index. The statement read: "Economic transformation cannot be measured by social media trends or sponsored skits. It must be reflected in measurable outcomes – higher production, stronger consumer spending, thriving businesses, expanding industries, and increased taxable economic activities."
Otti's Pre-Election Promises Questioned
The party also took direct aim at the governor's pre-election pledges, noting that Otti had promised a wave of investor interest if elected in 2023. It challenged his administration to identify a single factory or industry, capable of employing at least 100 Abians, that has been established or commissioned under his watch. The APC further raised concerns about the state government's contracting practices, alleging that major public contracts had been awarded to companies based outside Abia. The party said this approach effectively transferred employment opportunities, spending power, and taxable commercial activity to other states, further undermining Abia's VAT performance.
Power Initiative Under Fire
The statement also questioned the real impact of the government's widely promoted 24-hour power initiative, arguing that if the scheme were genuine, it should have stimulated measurable gains in industrial output and business activity by now. While the APC acknowledged President Bola Tinubu's fiscal reforms for boosting federal allocations to states, it stressed that increased transfers from Abuja do not constitute economic development and should not be mistaken for internally generated growth. The party called on the Otti administration to prioritise productive investment over media management, and to focus on creating factories, jobs, and industries that generate real economic value for residents of the state.
Context: New VAT Enforcement on Bank Charges
Earlier, Legit.ng reported that the 7.5% Value Added Tax now applies to charges tied to electronic banking, including mobile app transfers and USSD sessions. This is not a brand-new tax rate. Nigeria's VAT has been 7.5% since 2020. What has shifted is enforcement and clarity around how VAT is added to digital banking fees. In simple terms, the money sent is not taxed; the small fee the bank or telecom operator charges for the service is what attracts VAT.
