Nigeria to Bolster FX Reserves via Local Production of Bitumen

By Aduragbemi Omiyale

The external reserves of Nigeria may soon begin to make a steady journey northwards without looking back when the country fully commences the local production of bitumen.

The country has about 42.74 billion metric tonnes (MT) of bitumen untapped and a significant amount of foreign exchange (FX) is taken from the forex coffers to bring this commodity into the country for the construction of roads and others.

But the Minister of Mines and Steel Development, Mr Olamilekan Adegbite, believes the scarce FX would be saved and more income generated for the nation at this critical time when local production starts very soon.

He informed newsmen in Abuja that the federal government is partnering with private investors for this to become a reality as a transaction advisor has been chosen to oversee the process.

According to him, “The Bureau of Public Procurement issued a notification of no-objection on June 16, 2021. Subsequently, the Ministry of Mines and Steel Development issued a letter of award on November 11, 2021, to PricewaterhouseCoopers to act as its transaction advisor and programme manager for the concessioning of bitumen blocks to potential investors.”

The Minister told journalists that “a nine-member Ministerial Bitumen Development Committee” was constituted on January 31, 2020,” to access the bitumen reserve in the country.

“The committee carried out an inventory of internal existing infrastructure; compiled available geological information, re-established contact with previous interested companies and developed a framework for transparent allocation of the bitumen resources.

“An important part of the committee’s recommendations was to finalise the process of engaging a transaction advisor to ensure the concession process is open, transparent and in accordance with global best practices as enshrined in the Nigerian Mineral and Mining Act, 2007,” he stated.

Business Post reports that the foreign reserves of Nigeria are getting closer to $40 billion. As of Tuesday, April 26, 2022, the amount in the coffers of the nation stood at $39.678 billion.