The Nigerian Sovereign Investment Authority (NSIA) has partnered with Vitol to establish a joint venture to invest in a range of high integrity, socially impactful, carbon avoidance and removals projects.
The Nigeria Sovereign Investment Authority is a Nigerian establishment which manages the Nigeria sovereign wealth fund, into which the surplus income produced from Nigeria’s excess oil reserves is deposited. Vitol is an independent trader of crude oil and oil products.
NSIA and Vitol have agreed to make an initial commitment of $50 million to this new venture. It will invest exclusively in projects in Nigeria, partnering with local NGOs which have a proven track record of successfully delivering high-quality projects that combine carbon offsetting with social benefits that contribute to UN Sustainable Development Goals.
It is anticipated the new venture will be open to new investors as partners develop the project pipeline. This 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 of the Nigerian Sovereign Investment Authority speaking on the partnership said:L “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.
“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,” said Orji.
Michael Curran, head of environmental products, Vitol 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. 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.”