WITH 42 BILLION BARRELS, NIGERIA TO BECOME BUTIMEN NET EXPORTER – ALAKE

 

Dele Alake, the Minister of Solid Minerals Development, has informed investors that Nigeria should not import bitumen given its reserves of 42 billion barrels, highlighting the country’s potential to be a net exporter. 

Alake made this statement following the conclusion of the bidding process of the first round of Bitumen blocks bidding in Abuja.  

The Minister addressed the concessionaires in a meeting, urging them to fulfill their obligations by complying with the engagement terms and the mining act, and to acknowledge the role of host communities’ cooperation. 

The Minister further mentioned that with its abundant bitumen reserves, the country should be a net exporter to the global market. 

“With an estimated reserve of 42 billion barrels of Bitumen and the second largest deposit in the world, Nigeria has no business importing Bitumen, we should be a major net exporter to the rest of the world and we have no choice but to make this a reality. 

“We want to know for instance as you move forward, how much of taxes you are paying, the royalties you are remitting, the local value addition that you are putting in place, the local employment generation or the multiplier effect and then the impact on your host communities. 

“I will advise that you endeavour to engage your host communities and get their buy-in through Corporate Social Responsibility (CSR) and other efforts you can make to ensure seamless operations which will culminate in maximum beneficiation for you as investors, the communities and government”, the Minister said.

Moreover, Alake called on the initial round of winners of the bidding process to demonstrate outstanding performance to motivate potential investors. 

What you should know 

While Nigeria stands as Africa’s leading energy producer, it has struggled to make the most of its extensive mineral resources, impacted by insufficient incentives, illegal activities, low investment opportunities as well as neglect. 

The nation’s mining sector, which is underdeveloped, contributes less than 1% to its gross domestic product.

Meanwhile, the federal government aims to attract more investment in the mining sector by issuing more licenses.

A state-owned corporation for solid minerals was also established, offering investors a 75% ownership stake.

Additionally, to tackle illegal mining activities, a special security unit was created, dedicated to ensuring the sector’s protection and legality.