The senate on Wednesday passed a bill seeking to establish the Bitumen Development Commission to regulate and harness Nigeria’s vast deposit of the mineral resource.
Thefrontrank reports that the bill was sponsored by Jimoh Ibrahim, Senator representing Ondo South.
The bill was read for the third time and passed on after the presentation of the report by the senate committee on solid minerals development.
Presenting the report, Diket Plang, Senator representing Plateau Central and a member of the committee, said the commission is necessary to unlock the economic potential of Nigeria’s estimated 42 billion tonnes of bitumen deposits.
“Nigerian bitumen deposits, which are in large deposits in the southwestern part of this country, cutting across Ogun, Ondo, Edo, within the onshore part of the Dahomey Basin, are the second largest in the world, with an estimated reserve ranging from 13 to 42 billion tonnes, almost twice Nigeria’s oil reserve,” Plang said.
“However, this huge natural endowment is yet to be fully exploited for maximum benefit of the country.
“The committee also noticed that despite the viability of this natural gift in the country, there is no content legal legislative frame in place to fully regulate bitumen development, exploration, and exploitation for the benefit of the country.”
Plang said bitumen is a key component in asphalt and other industrial applications and should be prioritised for both domestic and export use.
“The committee resolved and recommends that the senate do consider and pass the Bitumen Development Commission establishment bill,” he said.
Mohammed Tahir Monguno, senator representing Borno Central, said the bill aligns with the federal government’s economic diversification agenda.
“This bill is in consonance with the fact that the programme of this government, as encapsulated in the Renewed Hope mantra, seeks to diversify the Nigerian economy, being a monolithic economy, for other sources of revenue,” he said.
“It will go a long way in improving the revenue of the country. It will also generate a lot of multiplier effect on the economy.”
Senate President Godswill Akpabio commended Ibrahim and the committee for the “development-driven initiative.
“This is a significant step toward diversifying Nigeria’s economy and unlocking the vast potential of our mineral resource,” he said.
The proposed commission is expected to serve as a regulatory and development agency to attract investment and position Nigeria as a global leader in bitumen production.
