Carbon reduction: Nigeria Sovereign Investment Authority seals $50m joint venture deal with Vitol

As part of the country’s commitment to reducing carbon emissions, the Nigeria Sovereign Investment Authority has sealed a deal with Vitol on a joint venture agreement to invest in a range of high integrity, socially impactful, carbon avoidance and removal projects.

The NSIA, an investment institution of the Federation with the statutory mandate of managing funds in excess of budgeted hydrocarbon revenues, said an initial $50 million is being committed into the new venture.

According to the organization, the new venture is open to new investors as the partners develop the project pipeline.

The Managing Director/CEO of NSIA, Mr Uche Orji, said the agency is committed to playing a leading role in advancing climate solutions that will lower Nigeria’s carbon emissions.

The initiative will seek to mobilize voluntary market carbon capital from the partners and potential third parties in a small step toward a more equitable energy transition for Africa, a statement given to Persecondnews said.

NSIA is also to play a leading role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilization support in times of economic stress.

The Authority is empowered to receive, manage, and invest funds in a diversified portfolio of medium and long-term assets on behalf of all three tiers of government including the Federal Capital Territory, in preparation for the eventual depletion of Nigeria’s hydrocarbon resources.

Through the agreement, both companies would invest exclusively in projects in Nigeria, partnering with local NGOs that have a proven track record of successfully delivering high-quality projects that combine carbon offsetting with social benefits that contribute to the United Nations Sustainable Development Goals.

Orji, while expressing optimism that the partnership with Vitol will be key to establishing and accelerating carbon reduction and avoidance in Nigeria, said this would be achieved by providing an enabling platform to trade carbon credits.

“NSIA is committed to playing a leading role in advancing Climate Solutions that help to lower Nigeria’s carbon emission as an integral part of its ESG strategy.

“NSIA expects that the partnership with Vitol will be key to establishing and accelerating carbon reduction and avoidance in Nigeria by providing an enabling platform to trade carbon credits, while channeling investments in sustainable projects to deliver emission-reduction results.