NSIA seals $50m joint venture carbon reduction deal with Vitol

The Nigeria Sovereign Investment Authority (NSIA) says it has sealed a joint venture (JV) agreement with Vitol to invest in carbon avoidance and offsetting projects.

In a recent statement, NSIA said the agreement would commit $50 million into the new venture.

Through the agreement, NSIA said both companies would invest exclusively in projects in Nigeria, partnering with local non-governmental organisations which deliver high-quality projects that combine carbon offsetting with social benefits. 

The NSIA added the new venture is open to new investors as the partners develop the project pipeline.

It said the initiative would seek to mobilise voluntary market carbon capital from the partners and potentially third parties towards a more equitable energy transition for Africa. 

Speaking on the partnership, Uche Orji, managing director and chief executive officer, NSIA, said the authority is committed to playing a leading role in advancing climate solutions that would reduce Nigeria’s carbon emissions.

Orji expressed optimism that the NSIA’s partnership with Vitol would be key to establishing and accelerating carbon reduction and avoidance in Nigeria.

“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 channelling investments in sustainable projects to deliver emission-reduction results,” he said.

“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, a Dutch energy and commodity trading company, said the company has been investing in high-quality carbon mitigating projects globally for over ten years.

“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,” Curran said. 

“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.”