The Arewa Economic Forum (AEF) has called for the establishment of a refinery at the Kolmani Oil Field in Bauchi State.
Ibrahim Shehu Dandakata, Chairman of the AEF, made this announcement during a press conference in Abuja, emphasizing that the project is vital for the economic survival of Northerners, particularly in light of the current exorbitant fuel prices in the country.
Dandakata argued that transporting fuel from the South to the North, which leads to rising costs, is unsustainable. He highlighted that since several Korean investors are willing to build refineries in Nigeria, one of them should be located in Kolmani to significantly address the fuel needs of the North.
He stated, “We believe that addressing our energy security and ensuring the availability and affordability of energy will be instrumental in driving economic growth. We reiterate our call for the government to site one of the four proposed 100,000 barrels per day refineries by Korean investors in Kolmani. This initiative would reduce the costs of refining and transportation while effectively meeting a substantial part of the northern market’s needs.”
The Kolmani Integrated Development Project is expected to attract approximately $3 billion in Foreign Direct Investment (FDI) and is designed to include a 120,000-barrel per day refinery, a gas processing plant with a capacity of 500 million standard cubic feet per day, a 300-megawatt power plant, and a fertilizer plant producing 2,500 tons per day.
Replacement of VAT with Sales Tax
The AEF also aligned with the Northern Governors’ Forum in opposing the Value Added Tax (VAT) Bill currently before the National Assembly. The Forum proposed that the federal government should focus on implementing a Sales Tax instead, which they believe would generate more revenue if effectively administered.
Dandakata remarked, “While we commend the Federal Government for its tax collection reforms, we believe that as the government strives to widen the tax net and alleviate the tax burden on citizens, it is crucial to reconsider the current Value Added Tax (VAT) system. We suggest replacing VAT, which is a multi-layered tax structure, with a simpler sales tax that serves as a genuine consumption tax paid at the point of sale.
This change would bring more companies, enterprises, and services under the government’s tax net, enhancing collection efficiency and enabling a fairer distribution of revenue based on derivation.”
Integrating Community Leaders in Security Architecture
The Forum urged the government to urgently tackle banditry, terrorism, and other organized crimes that lead to infrastructure vandalism and the abandonment of farmland and communities in the region.
Dandakata emphasized, “Counterinsurgency efforts are critical to the stability of our region and the nation, especially concerning the harvesting and exploration of our agricultural, commercial, and mining resources. We implore government agencies at all levels to expedite efforts to make our lives safer and more affordable, particularly in light of the direct link between food inflation and insecurity. There is no way to win this kind of insurgency without the full cooperation of the local people. Local leaders should work with security personnel in areas affected by these issues.”
He acknowledged the positive role civil agencies have played in combating Boko Haram and called for the government to foster a cooperative relationship at all levels to enhance security efforts.
