The Senate in Abuja made a legislative move to include Nigeria in the $147 billion global bitumen market with the passage of a bill seeking the establishment of a Bitumen Development Commission.
Nigeria, as stated in the bill sponsored by Senator Jimoh Ibrahim (APC, Ondo South), has 5.9 trillion barrels (938 billion square metres) of bitumen and heavy oil resources, second only to Venezuela.
He specifically informed the Senate that more than 80% of global bitumen is found in Canada, United States of America, Venezuela, and Nigeria. He, however, lamented that while other countries are exploiting it through the required legislation or legal frameworks, Nigeria has no legal framework for exploration.
According to him: “The objectives of the bill include the need to develop a legal framework for the regulation of bitumen development in Nigeria; to prevent unconventional sources from taking advantage of research-enhanced applications over other competitors; and to lead innovation and resource-based strategy in the development of bitumen in Nigeria.
“The bill will also ensure effective utilisation of over 38 billion reserves of bitumen in Nigeria and promote the economic diversification policy of the Federal Government.”
He added that the bill, among other reasons, seeks to restrict the commission’s activities to its regulatory and coordinating functions, specifically as it relates to the development of bitumen in Nigeria.
Ondo State alone, according to him, has the highest deposit in Africa, with an estimated value of $42 billion, aside from deposits in Ogun State, Edo, Lagos, and Akwa Ibom states.
“The proposed Bitumen Development Commission, when established, would fast-track the development of bitumen in Nigeria, make her a key player in the $147 billion global market and create instant 12,000 jobs for Nigerians.
“It would also help government at various levels to put asphalted roads in various communities. Out of the 200, 000 kilometres of roads in Nigeria, only 20,000 are asphalted, even with imported bitumen,” he said.
Many of the senators who contributed to the debate on the bill concurred with Jimoh Ibrahim’s submissions, leading the Senate to put it to voice votes by its President, Godswill Akpabio, and pass it for a second reading.
The Senate President, who commended Senator Jimoh Ibrahim for sponsorship of the development-driven bill, mandated the Senate Committee on Solid Minerals to make further legislative inputs on it and report back in a month’s time.
Senate seeks Nigeria’s inclusion in $147bn global bitumen market
