The Nigerian government says it will issue a Request for Qualifications in June for bidders interested in receiving concessions to begin the production of bitumen in the country.

Nigeria holds about 42.47 billion tonnes of proven reserves of bitumen, estimated to be the sixth largest in the world, but has not yet exploited the resource, a potential huge source of revenue for the country.

Bitumen is a black viscous mixture of hydrocarbons obtained naturally or as residue from petroleum distillation. It is used for road surfacing, roofing, adhesives, and insulation and is found in Lagos, Ogun, Ondo and Edo States.

After repeatedly failing in the past to harness its bitumen reserves, the government now says it will grant concessions of bitumen blocks to prospective local and international companies in a bid to end the importation of the mineral deposit in the country.

It appointed PriceWaterHouseCoopers as its transaction advisor.

The Minister of Mines and Steel Development, Olamilekan Adegbite, at a pre-event press conference in Abuja on Monday, said local bitumen production would save the country’s foreign exchange and generate income for the government. He explained that with the production of bitumen locally in the country, the cost of road construction would ultimately reduce.