(Ecofin Agency) - The Federal Government of Nigeria on Tuesday said it has granted Ondo state an oil block licence for the exploration of bitumen in the state. This is in line with efforts to diversify the economy from oil and boost the country’s foreign exchange, according to Mohammed Amate, Director of Mining Licence at the Ministry of Mines and Steel Development.

Amate disclosed this at the first Ondo State Investment Forum held at the International Event Center (DOME) in Akure.

“Nigeria currently imports over 600,000 tons of asphalt per annum and the nation spends billions of naira on importation of asphalt every year. With bitumen being produced in Ondo State, the Federal Government will ensure that none of its road contractors imports asphalt and I am sure that many state governments will prefer to buy from Ondo state because it will definitely be cheaper here than imports from outside the country,” he said.

Lauding the award, the Governor of Ondo, Rotimi Akeredolu (photo), noted that for the initiative to be successful, the government needs to prioritize and patronize the mining industry.

“Ondo state boasts of possessing one of the largest reserves of Bitumen and Tar Sands in the world. The State is also endowed with large deposits of various solid minerals including Limestone, Coal, Granite, Kaolin, Silica Sand amongst other minerals,” Akeredolu highlighted, adding that “It is estimated that over 90% of the minerals in Ondo are unexploited and unutilized. This Government is willing and ready to exploit its Bitumen reserves in a sustainable way particularly in the area of providing asphalt for road development.”

Anita Fatunji