Arewa Economic Forum Calls for VAT Replacement with Sales Tax, Urges Revival of Kolmani Oilfield

Arewa Economic Forum Calls for VAT Replacement with Sales Tax, Urges Revival of Kolmani Oilfield

The Arewa Economic Forum (AEF), a leading socio-economic organization in Northern Nigeria, has advocated for the replacement of the Value-Added Tax (VAT) system with a Sales Tax. This shift, according to the forum, would simplify tax processes, ease the financial burden on businesses and individuals, and foster economic growth across the region.

At a recent press conference in Abuja, AEF Chairman Ibrahim Shehu Dandakata highlighted the current VAT structure’s limitations, proposing a streamlined Sales Tax collected at the point of sale. He argued that such a change would broaden the tax base by bringing more businesses into the tax fold, thus enhancing revenue collection and ensuring a fairer distribution of funds across regions based on economic contributions.

In addition to tax reform, Dandakata expressed dismay over the stalled Kolmani Oilfield project in Bauchi State. The abandonment of this project, he said, represents a missed opportunity for revenue generation, economic development, and job creation in northern Nigeria. Dandakata underscored the forum’s ongoing dialogue with the Federal Government, advocating for the establishment of one of four proposed 100,000-barrel-per-day refineries in the Kolmani region by South Korean investors. This development, he noted, would not only lower refining and transportation costs but also help meet the energy needs of northern Nigeria, thereby reducing regional energy disparities.

Dandakata revealed that the Kolmani Integrated Development Project has already attracted substantial foreign direct investment (FDI), amounting to an estimated $3 billion. The project envisions a comprehensive industrial ecosystem, including a 120,000-barrel-per-day refinery, a gas processing plant, a 300-megawatt power facility, and a fertilizer production plant. This infrastructure, he emphasized, could transform the economic landscape of northern Nigeria, creating thousands of jobs and driving industrial growth.

On security, Dandakata commended recent government efforts to tackle banditry in the region. However, he called for increased action against terrorism and organized crime, which continue to hinder regional development by causing infrastructure damage and forcing communities to abandon farmland. He highlighted the vital role of stability and security in enabling northern Nigeria to unlock its agricultural, commercial, and mining potential, crucial for the country’s broader economic well-being.

Dandakata also urged all levels of government to implement policies that would enhance food affordability and address food inflation, especially given the direct link between insecurity and food prices. According to him, stabilizing agricultural production will alleviate food scarcity and improve living standards across the region.

In a broader plea, the AEF Chairman warned against actions by state actors and individuals that undermine democratic principles, especially the manipulation of judicial processes. He stressed that such actions pose a risk to democratic values and the nation’s stability, emphasizing that preserving democratic norms is essential to fostering a prosperous and resilient Nigeria.

Dandakata concluded by reaffirming the Arewa Economic Forum’s commitment to advocating for policies that uplift the Arewa community and drive sustainable socio-economic progress across Nigeria.

By PRNigeria