The Minister of Solid Minerals Development, Dr. Dele Alake, has encouraged the 18 winners of the first round of the Bitumen blocks bidding process to put in effort to develop Nigeria’s Bitumen reserves.
This information was revealed in a statement signed by the minister’s Special Assistant on Media, Segun Tomori.
During a meeting with the concessionaires on Thursday at the ministry headquarters in Abuja, Alake asked them to meet the expected standards by following the terms of engagement and relevant sections of the Mining Act while also considering the host communities and seeking their cooperation.
Bitumen, a black thick mixture of hydrocarbons obtained naturally or as residue from petroleum distillation, is utilized for road surfacing, roofing, adhesives, and insulation. It is found in Lagos, Ogun, Ondo, and Edo states.
The Minister of Works, David Umahi, had expressed concerns about the high pricing and low quality of materials used in road construction.
However, Alake, while speaking at the event, advised the concessionaire to make the country a significant exporter of the product globally.
Alake stated, “With an estimated reserve of 42 billion barrels of Bitumen, the second largest deposit in the world, Nigeria should not be importing Bitumen. Instead, we should be a major exporter to the rest of the world, and we must make this happen.
“As you move forward, we want to know, for example, how much taxes you are paying, the royalties being remitted, the local value addition in place, the local employment generation, and the impact on the host communities.
“I suggest that you make efforts to involve your host communities and get their support through Corporate Social Responsibility and other initiatives to ensure smooth operations, which will ultimately benefit you as investors, the communities, and the government.”
Alake, while hinting at another round of bidding, urged the first-round winners to deliver exceptional performance, serving as motivation for potential investors.
The minister assured the Bitumen investors of the Federal Government's support, emphasizing that their success holds significant potential for economic growth and prosperity, marking the diversification of the economy.
In his comments, the Director-General, Mining Cadastral Office, Obadiah Nkom disclosed that there were two unsuccessful attempts to concession Nigeria’s Bitumen blocks in 2002 and 2008.
He indicated that following the latest successful bidding process, the MCO granted 34 bitumen licenses, including 18 exploration licenses and 16 mining licenses.
The approval was given after the minister’s approval and a final endorsement by the Federal Executive Council.
In another development, Alake established two committees for the development of Bitumen.
According to the statement, the first is a ministerial committee led by Nkom and a technical committee to oversee Bitumen activities led by the Director, Mines Inspectorate of the Ministry, Imam Ganiyu.
