FG loses $110bn from global bitumen market – Senate

Ignatius Okorocha, Abuja

The Senate through its committee on Solid Minerals , declared on Thursday that Nigeria is missing out of the $110billion bitumen global market .

This is as the various stakeholders in the solid minerals sector , threw their weight behind establishment of Bitumen Development Commission .

Need for Nigeria to tap into the $110billion global bitumen market , came to the fore during public hearing on a bill seeking for an Act on establishment of Bitumen Development Commission , organized by the Senate Committee on Solid Minerals chaired by Senator Samson Ekong ( PDP Akwa Ibom South ) .

In his submission at the public hearing , the sponsor of the bill, Senator Jimoh Ibrahim ( APC Ekiti South) , lamented that Nigeria which has the highest deposit of bitumen after Canada and Venezuela, has not tapped into the $110billion global bitumen market due to lack of required galvanization.

The $110billion bitumen global market according to him, is currently being controlled by Nine countries in the world , some of which have less quantities of the Natural resources when compared to Nigeria .

He specifically stated that Ondo State has the highest deposit of bitumen in Africa with an estimated value of $42billion .

” Earnings from bitumen deposit in Nigeria , if properly harnessed, can finance Nigeria’s budget”, he said.

He added that the global in- place bitumen and heavy oil resources are estimated to be 5.9 trillion barrels (937 billion m3); more than 80 percent of these resources are found in Canada, the US, Nigeria, Venezuela.

The global bitumen market according to him , is valued at USD 107.12 billion in 2023 and is projected to reach USD 146.58 billion by 2030 which presently has the United States, Germany, UK, France, Italy, Spain, Russia, Poland,China, Japan, India, Malaysia, Columbia and Mexico as key players .

” Bitumen Development Commission of Nigeria will lead innovation and improved strategy of finance resource. A good case of the impressive alternative revenue for Nigeria “, he stressed.

The chairman of the Committee, ,Senator Ekong said Nigeria need a legal inroad to develop her mineral industry to expand her earning power and contribute greatly to the nation’s Gross Domestic Product (GDP) and provide ample job opportunities .

He commended the sponsor of the bill for his passion in the development of the solid mineral sector and bringing to the limelight the vast deposits of bitumen in Ondo State and other states like Edo, Ogun, Akwa Ibom and Lagos states.