Nigeria is targeting a substantial revenue from its bitumen reserves as the Senate on Wednesday passed a bill seeking to establish the Bitumen Development Commission.
This development marks a significant legislative step towards harnessing the country’s vast bitumen resources.
Its passage on Wednesday followed the presentation and adoption of the report of the Senate Committee on Solid Minerals Development, which conducted a review of the bill.
The report was presented by Mr Diket Plang on behalf of the chairman of the committee.
The bill sponsored by Mr Jimoh Ibrahim aims to create a dedicated regulatory body that will oversee the exploration, exploitation and management of Nigeria’s estimated 42 billion tonnes of bitumen reserves.
Nigeria has the second largest deposit of bitumen in the world, after Canada.
Presenting the report, Mr Plang said the committee held a well-attended public hearing where stakeholders from across the mining and energy sectors unanimously supported the passage of the bill.
He said the establishment of the Bitumen Development Commission was widely endorsed as a critical step towards diversifying the economy, reducing dependency on crude oil.
“And enhancing infrastructure development through the domestic production of bitumen for road construction.
“The bill among others seeks to make Nigeria’s exportable raw materials attractive in international markets through value addition,” he said.
He added that it would strengthen local manufacturing sector, reduce dependency on import and ensure sustainable economic development through the promotion of local processing of raw materials.
“Stakeholders agreed that the commission is long overdue considering the strategic importance of bitumen in national development.
“And the fact that Nigeria continues to import bitumen in spite of having one of the largest reserves globally.”
He further noted that the commission, once established, would help coordinate investment in bitumen development, standardise production processes, ensure environmental safety, and attract foreign and local investors to the sector.
In his remarks, the President of the Senate, Mr Godswill Akpabio, commended Mr Jimoh Ibrahim for sponsoring the bill and lauded the Committee on Solid Minerals Development for its diligence.
Mr Akpabio described the bill as a “development-driven initiative” that aligns with the federal government’s efforts to unlock the potentials of Nigeria’s solid minerals sector.
“This is a landmark development. We must begin to look beyond oil and this Commission will create the framework for Nigeria to finally tap into its bitumen wealth and grow our economy in a sustainable way,” Mr Akpabio said.