The Arewa Economic Forum (AEF) has urged the Nigerian government to establish a refinery at the Kolmani Oil Field in Bauchi State.
This call was made by AEF Chairman, Ibrahim Shehu Dandakata, during a press conference in Abuja, where he stressed the project’s importance for the economic welfare of Northern Nigerians, especially in the face of escalating fuel costs.
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Highlighting the impracticality of transporting fuel from the South to the North amid rising prices, Dandakata noted that building a refinery in Kolmani would be a sustainable solution for meeting the region’s energy needs.
He added, “We believe that addressing our energy security and ensuring the availability and affordability of energy will be instrumental in driving economic growth.” According to Dandakata, the proposed Kolmani refinery, backed by Korean investors, would have the capacity to produce 100,000 barrels per day, significantly easing fuel distribution and costs in the North.
The Kolmani Integrated Development Project, designed to bring in $3 billion in Foreign Direct Investment (FDI), is set to house a 120,000-barrels-per-day refinery, alongside a 500-million-standard-cubic-feet-per-day gas processing plant, a 300-megawatt power plant, and a fertilizer facility capable of producing 2,500 tons daily.
AEF backs sales tax over VAT reform
Aligning with the Northern Governors’ Forum, the AEF voiced its opposition to the proposed Value Added Tax (VAT) bill currently under review by the National Assembly. Instead, the Forum recommended the adoption of a simpler sales tax model, which they believe could yield more revenue if efficiently managed.
“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,” Dandakata explained. He emphasized that a sales tax could broaden the tax net by bringing more businesses and services under government taxation, leading to more effective revenue collection and a fairer revenue distribution based on local contributions.
Integrate local leaders in security strategy to curb banditry
The Forum also called on the government to address the pressing issue of banditry and terrorism in the region, which has forced many communities to abandon farmland and other assets. Dandakata underscored the need for security agencies to work more closely with community leaders to counter the insecurity that has disrupted agriculture, commerce, and mining in Northern Nigeria.
“We implore government agencies at all levels to expedite efforts in this regard, so that our lives can become safer and more affordable, especially in light of the direct link between food inflation and insecurity,” he said.
Dandakata added that winning the fight against insurgency would require “the full cooperation of the local people,” highlighting the pivotal role of civil agencies in stabilizing areas affected by Boko Haram and other insurgent activities.
The AEF reaffirmed its commitment to working with the government to ensure that local security partnerships are strengthened across all levels to enhance peace and stability in Northern Nigeria.
