FG to commence licensing exercise for bitumen miners in Ondo

Federal Government at the weekend said it was set to commence a bidding process to license prospective investors to explore the vast bitumen deposits available in the country.

Kayode Fayemi, minister of solid minerals development, who disclosed this during a working visit to bitumen bearing communities at Agbabu in Ondo State, said the bidding round for licences would be for serious investors with proven work and financial plans.

Fayemi, who said the licence issuing process would be completed before the end of the year, also assured the visited communities of government’s readiness to protect their interests through the right policies and regulations.

Nigeria has the second largest deposit of bitumen in the world, spanning approximately 120 kilometres, according to data from the Federal Ministry of Solid Minerals.

The minister, in company of some top officials, inspected bitumen samples in Agbabu, Ilubirin and Lado communities and later had interactive sessions with leaders of the communities, where he assured them of government’s support.

“We want your minerals to work for you, and we are fully ready to assist your communities to ensure that you get the best from the process,” Fayemi told the community leaders, assuring them that within the next six months, massive work would commence on the bitumen project, particularly on exploration and exploitation of the mineral.

Lamenting that about 80 percent of asphaltic materials used for road construction in the country are still imported despite vast bitumen deposits in Nigeria, Fayemi insisted that the government would focus on ensuring that only serious investors were given licences.

“Priority will be given to investors that would build processing plants, as processing plants will boost local production, which will in turn help us to meet local demands and create job opportunities for our youths,” the minister said.

He stated that the major focus of the ministry is to ensure that the contribution of the solid minerals to the Gross Domestic Product (GDP) records a significant improvement from 0.3% to at least 10% in the near future.

“Serious investors will get tax holidays and would be encouraged to bring in mining equipment duty free and local investors, according to the minister, would be supported through access to funding as well as equipment leasing,” he said.

The spokesman for Agbabu community, Toyin Enate, while welcoming the minister, lauded the President Mohammadu Buhari administration for its commitment to the bitumen project.

He said the minister’s decision to encourage state governments to engage in mining was a positive step towards the realisation of the government’s diversification plan.