Bitumen Development Commission Bill passes second reading
…Nigeria losing out of $147b global bitumen market, says Senator Jimoh Ibrahim
By Tunde Opalana
A Bill seeking to establish the Bitumen Development Commission of Nigeria (Establishment) passed second reading stage on the floor of the Senate on Thursday.
And in due course, a public hearing will be held to canvass stakeholders opinions on the establishment of the Commission.
The Bill sponsored by Senator Jimoh Ibrahim (APC Ondo South) seeks to restrict the activities of the Commission to its regulatory and coordinating functions among other reasons specifically as it relates to the Development of Bitumen in Nigeria.
The senator said Nigeria has the second largest deposit of bitumen in the world after Venezuela but is currently missing out in the $147 billion global bitumen.market because the nation has no institution to regulate the vast natural resources.
He therefore, said, objectives of the Bill includes: the need to develop a legal framework for the regulation of the 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.
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Senator Ibrahim added that the Bill will also ensure effective utilisation of over 38 billion reserve of bitumen in Nigeria; and to promote economic diversification policy of the Federal Government. In compliance with Order 76(3) of the Senate Standing Orders, 2023 as amended, a financial compendium showing the financial implication of the Bill on the consideration. treasury of the Federal Government.
Leading the debate, Ibrahim said ” the global in-place Bitumen and heavy oil resources are estimated to be 5.9 trillion barrels (938 billion m3); more than 80% of these resources are found in Canada, USA, Venezuela and Nigeria.
“If passed provides clarity on the regulatory functions of the Bitumen Development Commission of Nigeria in ensuring that Bitumen Development in Nigeria conform with international best practices”.
Speaking with journalists after plenary, the Ondo senator said Ondo State has bitumen deposits worth about $42 billion in Agbabu, Odo Aye, Odo Ire, Igbotako and Ajebandele and also economically viable deposits in Edo, Ogun and Lagos states
On what will be the economic gain of the Commission to Nigeria, Senator Ibrahim said full exploration of bitumen will boost the nation’s economy.
“If Nigeria as a nation can tap into just 10 percent of the global market , we can take revenue that will be enough to offset the nation’s foreign debts.
He said the Commission if established will be sustained from proceeds from the bitumen industry.
