Senate on Thursday at plenary passed for second reading, a bill to establish Bitumen Development Commission of Nigeria.

The bill was sponsored by Sen.Jimoh, Ibrahim (APC-Ondo).

Leading debate on the general principles of the bill, Ibrahim said the bill was read for the first time on July, 20.

He said the bill among other reasons seeks to restrict the activities of the commission to its regulatory and coordinating functions, specifically as it relates to the development of bitumen in Nigeria.

He said that the global in-place Bitumen and heavy oil resources were estimated to be 5.9 trillion barrels, saying that more than 80 per cent of the resources are found in Canada, USA, Venezuela and Nigeria.

He listed the objectives of the bill to include, the need to develop a legal framework for the regulation of the bitumen development in Nigeria.

He said the bill has the objectives to prevent unconventional sources from taking advantage of research-enhanced applications over other competitors.

He said the bill would help to lead innovation and resource-based strategy in the development of bitumen in Nigeria.

According to him, the bill will ensure effective utilisation of over 38 billion reserve of bitumen in Nigeria; and promote economic diversification policy of the Federal Government.

He said the bill when passed would provide clarity on the regulatory functions of the Bitumen Development Commission of Nigeria in ensuring that bitumen development in Nigeria conforms with international best practices.

Contributing,Sen.Adams Oshiomole (APC-Edo) said he was not convinced that there should be proliferation of agencies to explore mineral resources in the country.

He said the creation of additional agencies would further result in increased overhead cost and ultimately increase cost of governance.

Sen.Neda Imasuen(LP-Edo) said the bill when passed would help in further diversification of the economy and improve foreign exchange earnings for Nigeria.

BRANDPOWER reports that the President of Senate,Godswill Akpabio after the second reading , referred the bill to Committee on Solid Minerals Development for further legislative input and to return back to plenary in four weeks.