….says bitumen is $82 bn business annually
By Haruna Salami
The Senate has passed a bill seeking to establish the Bitumen Development Commission to regulate and harness Nigeria’s vast bitumen deposits.
The passage of the bill on Wednesday followed presentation of the report of the Committee on Solid Minerals Development by Senator Diket Plang (Plateau Central) who said the commission is necessary to unlock the economic potential of Nigeria’s estimated 42 billion tons of bitumen deposits.
He added that the bill, sponsored by Senator Jimoh Ibrahim, (Ondo South), enjoyed wide support during a public hearing attended by stakeholders from across the country.
“Nigerian bitumen deposits, which are found largely in the southwestern part of the country, cutting across Ogun, Ondo, and Edo states within the onshore part of the Dahomey Basin, are the second largest in the world, with estimated reserves ranging from 13 to 42 billion tons, almost twice Nigeria’s oil reserves”, Plang said.
“However, this huge natural endowment has yet to be fully exploited for the maximum benefit of the country.
“The committee also noted that despite the viability of this natural resource, there is currently no comprehensive legal framework in place to regulate bitumen development, exploration, and exploitation for the benefit of Nigeria”.
Plang emphasized that bitumen is a key component in asphalt and other industrial applications and should be prioritized for both domestic use and export.
“The committee therefore resolved and recommends that the Senate consider and pass the Bitumen Development Commission Establishment Bill”, he said.
Also, Chief Whip Senator Tahir Monguno (Borno North) said the bill aligns with the federal government’s economic diversification agenda.
“This bill aligns with the government’s Renewed Hope mantra, which seeks to diversify Nigeria’s economy, traditionally monolithic, by developing other sources of revenue,” he said.
“It will significantly improve the country’s revenue and generate a substantial multiplier effect on the economy.”
In his remarks, Senate President Senator Godswill Akpabio commended Senator Jimoh Ibrahim and the committee for what he described as a “development-driven initiative.”
“This is a significant step toward diversifying Nigeria’s economy and unlocking the vast potential of our mineral resources,” he said.
Speaking with journalists after plenary, Jimoh Ibrahim said “the bitumen market is $82 billion per year urging Nigeria, which is the second largest in the world after Venezuela should take advantage of it.
According to him, “obviously it is a good day for Nigeria, it should be a day when all of us celebrate”.
“This will generate employment, provide opportunity for big investment and much sought-after, which is revenue of the federal government will now improve tremendously”.
The proposed commission with headquarters in Agbabu, in Ondo which has the first layer of exploration when it comes to bitumen is expected to serve as a regulatory and development agency that attracts investment and fosters innovation in the bitumen sector, positioning Nigeria as a global leader in bitumen production.