Nigeria has approved an estimated $10 billion oil exploration project in Bida Basin, Niger state, to be executed by an undisclosed Chinese firm, the state’s commissioner of mining and mineral resources, Abubakar Jibreel said.

At a ministerial briefing, Jibreel said President Goodluck Jonathan had approved the exploration of oil and gas deposit in the region and would soon sign an agreement with the said Chinese firm.

Five companies had signified interest to carry out the exploration, but the selected bidder won with an outstanding $10 billion investment proposal for the exploration of oil in Bida Basin.

Laboratory studies for  hydrocarbon deposits in the Bida Basin revealed that there was about a 70 percent gas and 30 percent oil composition, Nigerian newspaper, Leadership quoted Jibreel as saying.

Meanwhile, the commissioner warned against the activities of illegal miners in the state. He said the government will strategise on measures to curtail it before it hampers the economic development.

Nigeria is Africa largest oil producer despite challenges in its oil sector.  According to the country Finance Ministry, oil constitutes more than 80 percent of revenue and 95 percent of export income.

A $10 billion investment in its already booming oil industry attests to the increased FDI the country has experienced in recent times.