By Nathaniel Zacchaeus, Abuja
The Senate has commenced a legislative process to include Nigeria in the $147bn global bitumen market.
The Red Chamber at plenary yesterday passed for a second reading, a bill seeking to establish the Bitumen Development Commission.
The proposed legislation was sponsored by Senator Jimoh Ibrahim (APC Ondo South).
Ibrahim said the country has a quantum of 5.9 trillion barrels (938 billion m³) of global in-place Bitumen and heavy oil resources, second to Venezuela.
He specifically informed the Senate that more than 80 per cent of the resources are found in Canada, the United States of America, Venezuela, and Nigeria.
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He lamented that while other countries blessed with natural resources are exploiting them through required legislations or legal frameworks, Nigeria’ has no legal framework for such exploration with attendant untapped opportunities and huge market loss.
He said, “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 to promote economic diversification policy of the Federal Government”.
He added that the Bill among other reasons, seeks to restrict the activities of the commission 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 $42bn which aside from deposits in Ogun, 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 $147bn global market, and create instant 12, 000 jobs for Nigerians.
“It would also help the Government at various levels to put in place asphalted roads in various communities. Out of the 200, 000 kilometres of roads in Nigeria, only 20, 000 are asphalted even with imported Bitumen which is not good and being addressed with the proposed commission” he said.
The Senators who contributed to the debate on the bill, concurred with Jimoh Ibrahim’s submissions, making the Senate as put to voice votes by its President, Godswill Akpabio, pass it for a second reading.
Akpabio 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.
