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The occurrence of tar sands in Nigeria has been known for over a century but not yet commercially exploited for the benefit of the Nation. The tar sand belt spans across at least four major States, Edo, Ondo, Ogun and Lagos (about 120 by 4-6) square kilometers in area. Although the Federal Government of Nigeria had commenced the process of developing the Nigerian Tar sands to increase the mineral reserves base of the country, there is the need for the country to be guided by available modern technologies and possible economic scenarios that could lead to its commercial exploitation. This, therefore, necessitated this study which assesses and provides modern technological, engineering economic and policy parameters that could guide the commercial and sustainable development of the deposit in the country.