By Mercy Gadia Adi
The Senate has passed a bill for the establishment of the Bitumen Development Commission, aimed at regulating and promoting investment in the exploration, development, and exportation of bitumen in Nigeria.
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),” was sponsored by Senator Jimoh Folorunsho Ibrahim.
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The proposed commission is expected to 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.
During the second reading of the bill, some lawmakers expressed strong reservations. Senator Adams Oshiomhole 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 these objections, the Senate President ruled in favor 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 conducted a public hearing and interfaced with key stakeholders, including industry experts, state governments, and regulatory agencies, before submitting its 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.