By Obiabin Onukwugha
Nigerian is set to unlock its N42 billion bitumen potential as Nigerian Senate passes a bill for establishing the Bitumen Development Commission.
Nigeria boasts the second largest deposits of Bitumen globally, and the resource is primarily found in commercial quality in Lagos, Ogun, Ondo, and Edo states. Rivers and Bayelsa states are also reported to have deposits of the mineral though untapped.
The bill, sponsored by Senator Jimoh Ibrahim (APC, Ondo South), was passed on the floor of the Senate on Wednesday after the adoption of a comprehensive report from the Senate Committee on Solid Minerals Development.
Presenting the report, Senator Diket Plang (PDP, Plateau Central) noted that the Commission’s creation is essential for the effective regulation, exploration, and development of Nigeria’s estimated 42 billion tonnes of bitumen deposits.
Plang noted that despite the viability of the resource, there is currently no legal framework in place to regulate its development, exploration, and exploitation.
The Senator noted that the mineral, found largely in Ogun, Ondo, and Edo states within the Dahomey Basin, ranks as the second-largest deposit globally. He added that bitumen, a major component in asphalt and other industrial uses, should be prioritised for both domestic consumption and export.
Contributing, Senator Mohammed Tahir Monguno (Borno Central) backed the passage of the bill, saying it aligns with the federal government’s economic diversification agenda under the Renewed Hope initiative. He said the legislation would boost national revenue and trigger broad economic benefits.
When constituted, the Commission will be expected to, among others, effectively regulate the exploration and development of bitumen deposits.
In his submissions shortly after the passage of the bill, Senate President Godswill Akpabio lauded Senator Jimoh Ibrahim for sponsoring the bill, saying it will transform Nigeria’s solid minerals sector.
He said: “This is a monumental step towards unlocking Nigeria’s immense potential in the solid minerals sector.
He also noted that the commission will be instrumental in promoting bitumen exploration and production, thereby creating jobs and stimulating economic growth.
Presidential Bola Tinubu is expected to ascent to the newly enacted bill in the coming days.
In 2024, global demand for primary asphalt (bitumen) was estimated at 128 million metric tons, according to a report from The Freedonia Group.
Besides global demand, the Bitumen sector, if well harnessed, can drive infrastructure development and construction activities in Nigeria, especially as it grapples with deplorable roads and other key infrastructure decay.
