Nigeria: FEC approves local production of bitumen

Nigeria's Federal Executive Council (FEC) has approved a proposal by the Minister of Works and Housing, Babatunde Fashola (SAN), for local production of bitumen, according to a news report by The Nation.

It followed the minister's presentation of a policy memorandum entitled, "Approval for the local production of bitumen and other construction materials in Nigeria."

Fashola believes that local production would save the country's 56.2 percent of cost importation.

He said locally-made bitumen is expected to be sold at about N125,000 per metric tonne, which, according to him, is 48. 8 percent of N285,000 for the imported one.

In addition to reducing the cost of road construction significantly, he said it would create at least 30,000 jobs. The minister informed the FEC that the policy memo was an initiative of President Muhammadu Buhari.

According to him, the Kaduna Refinery and Petrochemical Company (KRPC) has an installed capacity of 1,796 MT per day, above present annual local consumption of 500, 000 MT.

Fashola said that the company can, therefore, produce bitumen to satisfy the domestic requirement and for export if it functions at full capacity.

He added that the local production of bitumen and other construction materials would facilitate economic diversification and technological growth.

The minister said the envisaged employment boost, especially in transportation haulage, was in line with the President's bid to lift 100 million Nigerians out of poverty.