Dr. Dele Alake, the Minister of Solid Minerals Development, has urged the 18 winners of the Bitumen blocks bidding process to dedicate themselves to developing Nigeria’s Bitumen deposits, as revealed in a statement by Segun Tomori, the minister’s Special Assistant on Media.
During a meeting at the ministry headquarters in Abuja, Alake emphasized the importance of adhering to the terms of engagement and relevant sections of the Mining Act, while also considering the host communities and securing their cooperation.
Bitumen, a dark viscous mixture of hydrocarbons used for various purposes such as road surfacing, roofing, adhesives, and insulation, is abundant in Lagos, Ogun, Ondo, and Edo states.
Minister of Works, David Umahi, had raised concerns about the high pricing and substandard materials in road construction.
Alake, on the other hand, urged the concessionaires to position Nigeria as a leading net exporter of Bitumen globally.
Expressing his vision, Alake stated, “With an estimated reserve of 42 billion barrels of Bitumen, Nigeria, as the second-largest deposit holder globally, should focus on exporting rather than importing Bitumen.”
“We expect transparency in tax payments, remittance of royalties, local value addition, employment opportunities for locals, and positive impact on host communities in your operations.
“I recommend effective engagement with host communities through Corporate Social Responsibility to ensure smooth operations with mutual benefits for investors, communities, and the government.”
Alake hinted at a subsequent bidding round, encouraging current winners to excel to inspire future investors.
The Minister assured Federal Government backing for Bitumen investors, citing the immense potential of their success for economic growth, fostering economic diversification.
In his address, Obadiah Nkom, the Director-General of the Mining Cadastral Office, highlighted past unsuccessful attempts at concessioning Bitumen blocks in Nigeria in 2002 and 2008.
Following a successful recent bid process, MCO issued 34 Bitumen licenses, including 18 exploration and 16 mining licenses, endorsed by the Federal Executive Council.
Alake also announced the establishment of two committees for Bitumen development.
These include a ministerial committee led by Nkom and a technical committee overseeing Bitumen activities chaired by Ministry’s Director of Mines Inspectorate, Imam Ganiyu.