The Nigeria Sovereign Investment Authority (NSIA) and one of the most renowned multi-national oil supply companies, Vitol, have entered into an agreement to establish a joint venture that will enable both firms to invest in a range of carbon avoidance and removal projects.
This would enable the two organisations to invest in projects in Nigeria, along with local Non-Governmental Organisations (NGOs) which have had experience in such projects that have contributed to the United Nations Sustainable Development Goals.
Both NSIA and Vitol are expected to make an initial commitment of $50million to this new venture.
According to a statement signed by officials of both organizations, the new venture is open to new investors as the partners develop the project pipeline.
NSIA said the initiative will seek to mobilise voluntary market carbon capital from the partners and potential third parties in a small step toward a more equitable energy transition for Africa.
Uche Orji, Managing Director and Chief Executive Officer, NSIA, stated that the authority was committed to playing a leading role in advancing climate solutions that will lower Nigeria’s carbon emissions.
He added that the NSIA’s partnership with Vitol will be key to establishing and accelerating carbon reduction and avoidance in Nigeria, stating further that his agency 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.
.He said this would be achieved by providing an enabling platform to trade carbon credits.
“We are therefore very pleased to be working with Vitol to channel our investments in sustainable projects to deliver emission-reduction results as well as significant socio-economic outcomes that will be of benefit to Nigerians.”
Also speaking, Michael Curran, Head of Environmental Products, Vitol, said the company had been investing in high-quality carbon mitigating projects globally for over 10 years.
According to him, the company was delighted to be partnering with the NSIA to support Nigeria’s efforts to reduce greenhouse gas emissions through projects that address critical environmental and climate threats.
He said Vitol has been investing in high-quality carbon mitigating projects globally for over a decade, with a recent focus on sub-Saharan Africa.
“We are delighted to be partnering with NSIA to support Nigeria’s national efforts to reduce greenhouse gas emissions through projects that address critical environmental and climate threats.
He the projects will have a clear focus on delivering social benefits, alongside the highest standards of carbon offsetting.
“Used appropriately as part of a comprehensive corporate energy transition strategy, offsetting will play a key role in meeting the Paris Climate Agreement objectives and contribute toward the UN Sustainable Development Goals.”
