FG has earned €1m from sales of carbon credits, says NAPIMS boss

The federal government has earned one million euros from sales of carbon credits through its partnership with TotalEnergies.

Bala Wunti, group general manager, National Petroleum Investment Management Services (NAPIMS), the agency charged with the responsibility of managing the nation’s investment in the upstream sector, ​​disclosed this to journalists on Wednesday.

Wunti spoke at the sidelines of the ongoing 2021 Nigeria International Petroleum Summit (NIPS) in Abuja.

Carbon credits are allowances paid by companies that allow it emits a certain amount of carbon dioxide or other greenhouse gases.

As at 2020, the World Bank recommended a price of $40 to $80 per ton for carbon to be traded.

Wunti said the €1 million was earned through its partnership with TotalEnergies.

“It is through our partnership with Total that we are able to market our credit position and monitise it and we have earned over one million euros so far,” he said.

“This is the first recorded carbon proceed we are receiving on behalf of the Federal Government of Nigeria and it is from the partnership of our parent company, Nigerian National Petroleum Corporation and Total.

“The business model is simple; any project that allows you the opportunity to have a reduced emission, you get a positive credit for it. You accumulate this credit. You can use it in several ways.

“Two major ways is either you use your positive carbon credit position to offset your negative position in other businesses to create a carbon neutrality or you can monetise it for someone in negative position.”

Wunti said Total has engaged in a joint venture with the Nigerian National Petroleum Commission (NNPC) to boost revenue inflow for the government and create a safe environment.

He said the federal government remains committed to the reduction of
carbon emissions in the country.

He added that Nigeria is focused on exploring the use of gas in support of the fight against global warming.

“Some have said that gas is a bridge fuel but I say gas is a destination fuel. I envisage that attention will be focused on gas resource,” he said.