The Arewa Economic Forum (AEF) has advocated for a new refinery at the Kolmani Oil Field in Bauchi State to help mitigate the economic strain from high fuel prices on Northerners.
Speaking at a press conference in Abuja, AEF Chairman Ibrahim Shehu Dandakata underscored the project’s importance for regional economic stability, particularly given the high fuel costs affecting the country. Dandakata pointed out that transporting fuel from southern regions to the North is unsustainable due to rising costs. With several Korean investors expressing interest in establishing refineries in Nigeria, he suggested that one should be set up in Kolmani to address the northern region’s fuel needs.
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 around $3 billion in Foreign Direct Investment (FDI). It will include a 120,000-barrel-per-day refinery, a gas processing plant capable of 500 million standard cubic feet per day, a 300-megawatt power plant, and a fertiliser plant with a capacity of 2,500 tons per day.
Replacement of VAT with Sales Tax
The AEF also voiced support for the Northern Governors’ Forum’s stance against the proposed Value Added Tax (VAT) Bill in the National Assembly, instead advocating for a Sales Tax. The Forum believes that a sales tax, if effectively administered, could increase revenue.
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.”
He added that 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.”
Addressing Insecurity in the Region
The Forum also called on the government to urgently combat banditry, terrorism, and other organised crimes that lead to infrastructure damage and the abandonment of farmland and communities in the North.
Dandakata emphasised, “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 urged the government to foster cooperative relationships across all levels to enhance security efforts.
