GOVERNOR Hope Uzodimma’s administration must rethink its policies and improve Imo State’s weak fiscal outlook, moving it from a civil service state to the industrial hub of the southeastern region, economists say.
In terms of debt, internally generated revenue (IGR), investments, job creation and security, Imo State scores low and struggles to compete with contingent states.
In the area of domestic debt, Imo State currently owes N218.9 billion, according to data from the Debt Management Office (DMO). This is the highest in the South-East region, with Abia’s debt standing at N138.8 billion, Anambra State owing N73.7 billion, Ebonyi owing N73.6 billion, and Enugu’s domestic indebtedness standing at N92.2 billion.
In terms of foreign loans, Imo State external debt stood at $77.8 million. It is however better than Anambra’s $105.6 million, Abia’s $92.3 million and Enugu’s $120.7 million. But it is higher than Ebonyi State’s $57.3 million external debt.
IGR low despite progress
In the area of internally generated revenue (IGR), Imo State reported N19.3 billion in 2022. This is lower than N34 billion recorded by Anambra, N28.7 billion reported by Enugu, and N20.1 billion made by Abia. It is only better than Ebonyi (smallest state in the region),which reported N12.4 billion in 2022.
In context, Imo State’s N19.3 billion is a big leap from N6.18 billion generated in 2018, N7.7 billion received in 2020 and N12.8 billion obtained in 2021.
However, Imo State is failing to generate sufficient revenue from its resources, according to economists. The number of micro and nano businesses in the state stands at 1.231 million, according to the Small and Medium Enterprises Development Agency (SMEDAN). There are 1.297 million micro/nano enterprises in Anambra State and 764, 844 in Abia State. Enugu State has 1.154 million micro/nano enterprises, while Ebonyi has 561,287 businesses in the category. This means Imo may not be earning enough revenue from its micro and nano enterprises.
“There are not many industries in Imo State today. There are shoemakers in Abia and manufacturing plants in Nnewi and Onitsha, Anambra State. However, Imo State, which boasted of industries such as Resin Paints and Paper industry in the olden days, does not have many now. What you have today is a retinue of hotels which obviously are not creating enough jobs and revenues for the state,” said an economist and lecturer at a tertiary institution in Abia State, Dr Nwokeoma Duruiheoma.
Low investments
In terms of attracting investments, Imo State lags behind Anambra and Abia. The capital importation data released in the third quarter of 2023 shows that Anambra attracted $4 million foreign investment within the quarter while Abia brought in $150.09 million. Imo State received no foreign investment from January to September, according to the NBS.
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“The truth is that investment goes to places where the environment is right. Would you go a state that is hit by armed conflicts if you were an investor? Would you go to a state where one part of it is controlled by armed civilians? The Imo State government and the Federal Government must begin to fashion out a way of resolving these conflicts caused by secessionists,” said Mr Anothony Gbachaa, a security analyst.
Insecurity, a problem
A 2022 report by the Foundation for Partnership Initiatives in the Niger Delta (PIND) said that violence led to the death of over 400 persons in Imo State between January 2019 and December 2021.
Similarly, Chairman of International Society for Civil Liberties and Rule of Law, Mr Emeka Umeagbalasi, claimed in May 2023 that about 1,600 unarmed citizens of Imo State were murdered while 300 others disappeared without trace between January 2021 and May 2023.
Insecurity has so harmed Imo State that some parts of Orlu axes are no more passable as they are held by several groups of armed civilians. When the reporter visited the area for an investigation in 2021, it was hard to navigate the terrain as it was ( and is still) a theatre of conflict between armed civilians and soldiers.
Killings, kidnappings, armed protests and murders are commonplace in the state, say security experts.
High number of jobless citizens
The last time credible unemployment data was produced by the NBS ( fourth quarter of 2020), it pronounced Imo State as the unemployment capital of Nigeria with 56.6 percent jobless rate. Unemployment in Anambra was 44.2 percent in 2020; Abia State’s was 50.07 percent; Enugu’s rate was 31.62 percent, while Ebonyi’s stood at 40.16 percent.
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Imo is a civil service state and no governor has been able to change that status. With the state unable to create many jobs, several young men and women in the state roam the streets without jobs.
During the 2023 governorship election campaign, Mr Uzodimma promised to relocate 4,000 young people in the state abroad.
“Let me tell you something, I have gone further to negotiate with the European Union companies and the Canadian companies. They are sending us areas of visible skills which our youths will also learn,” he had said in September 2023.
However, several Nigerians saw that as a political promise which would never materialise. But others said it reflected that Mr Uzodimma knew the level of joblessness in the state.
A Lagos-based economist, Ms Agatha Udemba, who is also a native of Imo State, said it was hard for a promising young man or woman to secure a good job in Imo State.
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“One found that getting a job with a salary of N100,000 in Imo State occurred only in 1 in 3,000 cases. Most people earn less than N100,000 in that state, which is a clear indication that there are only few firms doing well in the state,” she said.
