After two years of legislative deliberations, the Senate on Wednesday finally passed the bill seeking to establish the Bitumen Development Commission.
The bill, sponsored by Senator Jimoh Ibrahim (APC, Ondo South), scaled third reading following the presentation and adoption of the report by the Senate Committee on Solid Minerals Development.
Presenting the report, Senator Diket Plang (APC, Plateau Central), a member of the committee, said the proposed commission would serve as a regulatory body for the exploration, exploitation, and production of Nigeria’s bitumen resources, estimated at 42 billion tonnes, the second largest deposit in the world.
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Plang noted that the committee held a public hearing on the bill, during which critical stakeholders overwhelmingly backed the establishment of the commission.
In his remarks, Godswill Akpabio, the senate president commended Ibrahim and the committee for their efforts, describing the bill as a development-driven initiative that would help harness Nigeria’s vast solid mineral wealth.
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The bill was first introduced to the 10th Senate on July 20, 2023.
As proposed in the bill, the Bitumen Development Commission, when established, would also facilitate the execution of road infrastructure across the country and create jobs for Nigerians, particularly Geologists whose expertise would be needed in its exploration.
Ibrahim explained that the commission was important for Nigeria to tap into the $110billion global bitumen market.
In his submission at the public hearing, the sponsor of the bill lamented that Nigeria, which has the highest deposit of bitumen after Canada and Venezuela, has not tapped into the $110bn global bitumen market due to a lack of required galvanization.
The $110bn bitumen global market, according to him, is currently being controlled by nine countries in the world, some of which have less quantity of Natural resources when compared to Nigeria.
He specifically stated that Ondo State has the highest deposit of bitumen in Africa, with an estimated value of $42bn.
“Earnings from bitumen deposits in Nigeria, if properly harnessed, can finance Nigeria’s budget,” he said.
He added that the global in-place bitumen and heavy oil resources are estimated to be 5.9 trillion barrels (937 billion m3); more than 80 percent of these resources are found in Canada, the United States, Nigeria, and Venezuela.
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The global bitumen market according to him, is valued at USD 107.12 billion in 2023 and is projected to reach USD 146.58 billion by 2030 which presently has the United States, Germany, UK, France, Italy, Spain, Russia, Poland, China, Japan, India, Malaysia, Columbia and Mexico as key players.
“Bitumen Development Commission of Nigeria will lead innovation and improved strategy of financial resources. A good case of the impressive alternative revenue for Nigeria, ” he stressed.
