Development of Nigerian massive reserves of crude bitumen and associated heavy oil is imminent in view of the impacts that the huge importation of these materials and their products have on the nation's economy, coupled with the depleting reserves of Nigerian conventional oil. This article reviews the extent of the tar sands resources in Nigeria and highlights the appropriate production technology options and their environmental implications. The utilization potentials of these resources are also enumerated, as well as the government's role in achieving accelerated, long-term tar sands development in the country.