By Peterside Rejoice
The Senate on Wednesday passed for third reading a bill seeking to establish the Bitumen Development Commission, aimed at regulating and promoting investment in the exploration, development, and exportation of bitumen in Nigeria.
The passage followed the presentation and adoption of the report of the Senate Committee on Solid Minerals Development, chaired by Senator Sampson Ekong (PDP, Akwa Ibom South).
The report was presented by Senator Diket Plang on behalf of the chairman. The committee’s report came after a series of consultations, expert input, and a public hearing.
The bill, titled “An Act to Establish the Bitumen Development Commission of Nigeria and Provide a Legal Framework for the Promotion of Research, Study, Investment, Exploration, Production, Exportation, Development and Utilisation of Locally Sourced Bitumen in Nigeria and for Related Matters (2025),” is sponsored by Senator Jimoh Folorunsho Ibrahim (APC, Ondo South).
The proposed commission, according to the sponsor, will harness Nigeria’s estimated 38 billion barrels of bitumen reserves considered the second-largest deposit globally after Canada into a strategic revenue source for the country.
The bill also seeks to establish a strong institutional framework that will attract local and foreign investment into the sector, promote research, and enhance the economic diversification policy of the Federal Government.
Recall that the bill passed second reading on November 24, 2023, after intense debate on its merits and implications. During that debate, while many senators supported the proposal, some lawmakers expressed strong reservations.
Senator Adams Oshiomhole (APC, Edo North), speaking during the second reading, cautioned against the proliferation of commissions, warning that Nigeria’s growing debt profile made the creation of new agencies unsustainable.
“It is not the absence of laws that stops Nigeria from exploring natural resources; it has to do with political will,” Oshiomhole argued. “We are borrowing so much already. The Senate cannot be seen to enact laws that will lead to more commissions and increased government overheads.”
Despite such objections, the Senate President, Godswill Akpabio, had ruled in favour of the bill after it received majority support during a voice vote and referred it to the Committee on Solid Minerals Development for further legislative work.
The committee was mandated to conduct a public hearing and interface with key stakeholders, including industry experts, state governments, and regulatory agencies a process that led to the fine-tuning of the bill and the eventual submission of the committee’s report.
With the bill now passed at third reading, it will be transmitted to the House of Representatives for concurrence.
If approved by the lower chamber, it will then be sent to the President for assent, paving the way for the formal establishment of the Bitumen Development Commission of Nigeria.
About Author
