Nigeria yet to tap from $110bn revenue in global bitumen market, says Senator

Nigeria is yet to harness the potential for revenue generation in the 110 billion-dollar global bitumen market.

Sen. Jimoh Ibrahim said this 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-dollar global bitumen 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-dollar global bitumen market due to a lack of the required legal framework.

The 110 billion-dollar bitumen global market, according to him, is currently being controlled by nine countries in the world.

He said some of the countries have fewer 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 42 billion dollars.

”Earnings from bitumen deposits 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 percent of the resources are found in Canada, the US, Nigeria, and Venezuela.

He said the global bitumen market was valued at 107.12 billion dollars in 2023 and is projected to reach 146.58 billion dollars by 2030.

He listed the United States, Germany, the 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 improve the strategy of financial resources.

“A good case of 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, contribute greatly to the nation’s gross domestic product (GDP), and provide opportunities.

He commended the sponsor of the bill for his passion in 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 State.

Supreme News reports that some of the stakeholders that made presentations on the bill supported the establishment of the Bitumen Development Commission, while others called for modifications to some sections of the bill.