Nigeria is yet to harness the potential for revenue generation in the $110 billion global bitumen market.
Sen. Jimoh Ibrahim said in Abuja at a one-day public hearing on a bill for the establishment of the Bitumen Development Commission.
The public hearing was organised by the Senate Committee on Solid Minerals Development.
Ibrahim, who sponsored the bill said there was an urgent need for Nigeria to tap into the $110 billion global market to shore up its revenue profile and increase its GDP for the prosperity of the nation.
Ibrahim decried that Nigeria with the highest deposit of bitumen after Canada and Venezuela, was yet to tap into the $110 billion global market due to lack of required legal framework.
The $110 billion bitumen global market according to him, is currently being controlled by nine countries in the world.
He said some of the countries have less quantities of natural resources when compared to Nigeria.
According to him, Ondo state has the highest deposit of bitumen in Africa with an estimated value of 42billion dollars.
“Earnings from bitumen deposit in Nigeria, if properly harnessed, can finance Nigeria’s budget”, he said.
He said that the global bitumen and heavy oil resources are estimated to be 5.9 trillion barrels (937 billion m3) adding that more than 80 per cent of the resources are found in Canada, the US, Nigeria, and Venezuela.
He said the global bitumen market was valued at $107.12 billion in 2023 and is projected to reach 146.58 billion dollars by 2030.
He listed the United States, Germany, United Kingdom, France, Italy, Spain, Russia, Poland, China, Japan, India, Malaysia, Columbia and Mexico as key players in the sector.
“Bitumen Development Commission of Nigeria will lead innovation and improved strategy of finance resource.
“A good case of the impressive alternative revenue for Nigeria.
Chairman of the Committee, Sen. Ekong Samson said Nigeria required a legal framework to develop her mineral industry to expand her earnings and contribute greatly to the nation’s Gross Domestic Product (GDP) and provide opportunities.
He commended the sponsor of the bill for his passion for the development of the solid mineral sector and for bringing to the limelight the vast deposits of bitumen in Ondo State and other states like Edo, Ogun, Akwa Ibom and Lagos states.
Some of the stakeholders who made presentations on the bill supported the establishment of the Bitumen Development Commission, while some called for modification on some sections of the bill.
NAN
