Nigeria Sovereign Investment Authority (NSIA) has sealed a joint venture agreement with Vitol to invest in carbon avoidance and offsetting projects, the authority announced through a statement.
NSIA disclosed it will commit $50 million into the new venture, saying the venture is open to new investors as the partners develop the project pipeline.
NSIA said both parties would invest exclusively in projects in Nigeria, partnering with local non-governmental organisations to deliver high-quality projects that combine carbon offsetting with social benefits.
“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,” NSIA said.
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.
Managing Director and Chief Executive Officer of NSIA, Uche Orji, said the authority is committed to playing a leading role in advancing climate solutions that would reduce Nigeria’s carbon emissions.
He expressed optimism that NSIA’s partnership with Vitol would be key to establishing and accelerating carbon reduction and avoidance in Nigeria.