Nigeria missing out on $110bn global bitumen market, says Senate

The Nigerian Senate, through its Committee on Solid Minerals, has expressed concerns that Nigeria is still missing out on the $110 billion global bitumen market.

This was brought to the fore during a public hearing organised by the Senate Committee on Solid Minerals, chaired by Samson Ekong, the Lawmaker representing Akwa Ibom South, which discussed a bill seeking to establish the Bitumen Development Commission.

Jimoh Ibrahim, the Senator representing Ekiti South, the bill’s sponsor, lamented that despite Nigeria holding the largest bitumen deposits after Canada and Venezuela, the country has not capitalized on the $110 billion global bitumen market due to insufficient development efforts.

He noted that nine countries currently dominate the global bitumen market, some of which possess fewer bitumen resources than Nigeria.

Ibrahim specifically pointed out that Ondo State holds the highest deposit of bitumen in Africa, valued at an estimated $42 billion.

He emphasised that if properly harnessed, Nigeria’s bitumen deposits could significantly finance the national budget. He added that global bitumen and heavy oil resources are estimated at 5.9 trillion barrels, with more than 80 percent found in Canada, the US, Nigeria, and Venezuela.

He also mentioned that the global bitumen market, valued at $107.12 billion in 2023, is projected to reach $146.58 billion by 2030. Current key players in the market include the United States, Germany, the UK, France, Italy, Spain, Russia, Poland, China, Japan, India, Malaysia, Colombia, and Mexico.

“Establishing the Bitumen Development Commission of Nigeria will foster innovation and improve strategies for financing resource development, offering a significant alternative revenue source for Nigeria,” the Lawmaker emphasized

Ekong, Chairman of the Committee, underscored the need for a legal framework to develop Nigeria’s mineral industry, expand earning power, and contribute significantly to the nation’s Gross Domestic Product (GDP) while providing ample job opportunities.

He commended Ibrahim for his dedication to developing the solid mineral sector and highlighting the vast bitumen deposits in Ondo State and other states like Edo, Ogun, Akwa Ibom, and Lagos.