The Senate has passed a bill seeking to establish the Bitumen Development Commission to regulate and harness Nigeria’s vast bitumen deposits.
The bill was read for the third time and passed on Wednesday following the presentation of the report by the Senate Committee on Solid Minerals Development.
Presenting the report, a member of the committee, Senator Diket Plang (Plateau Central), said the Commission has become necessary to unlock the economic potential of Nigeria’s estimated 42 billion tonnes of bitumen deposits.
Senator Plang added that the bill, sponsored by Senator Jimoh Ibrahim, (Ondo South), enjoyed wide support during a public hearing attended by stakeholders from across the country.
“Nigerian bitumen deposits, which are found largely in the South-Western part of the country—cutting across Ogun, Ondo, and Edo states within the onshore part of the Dahomey Basin—are the second largest in the world, with estimated reserves ranging from 13 to 42 billion tonnes, almost twice Nigeria’s oil reserves,” Plang said.
“However, this huge natural endowment has yet to be fully exploited for the maximum benefit of the country,” Plang said.
He stressed that the committee also noted that despite the viability of this natural resource, there is currently no comprehensive legal framework in place to regulate bitumen development, exploration, and exploitation for the benefit of the country.
Plang emphasised that bitumen is a key component in asphalt and other industrial applications and should be prioritised for both domestic use and export.
“The committee therefore resolved and recommends that the Senate considers and passes the Bitumen Development Commission Establishment Bill,” he said.
Also, the Senate Chief Whip, Senator Tahir Monguno (Borno Central) said the bill aligned with the federal government’s economic diversification agenda.
“This bill aligns with the government’s Renewed Hope mantra, which seeks to diversify Nigeria’s economy, traditionally monolithic, by developing other sources of revenue,” he said.
Senator Monguno added that the sector will significantly improve the country’s revenue and generate a substantial multiplier effect on the economy.
In his remarks, Senate President Senator Godswill Akpabio commended Senator Ibrahim and the committee for what he described as a development-driven initiative.
“This is a significant step toward diversifying Nigeria’s economy and unlocking the vast potential of our mineral resources,” he said.
The proposed commission is expected to serve as a regulatory and development agency that attracts investment and fosters innovation in the bitumen sector, positioning Nigeria as a global leader in bitumen production.
