Nigeria’s NSIA signs $50 million deal with oil trader Vitol towards carbon reduction

The Nigeria Sovereign Investment Authority (NSIA) has entered a joint venture pact with Dutch energy and commodity trader Vitol to plough an initial $50 million into projects targeted at cutting back carbon emissions in Africa’s biggest crude producer.

The duo is setting sights on projects of high integrity and huge impact and with potential for carbon avoidance and removals, according to a statement seen by PREMIUM TIMES.

NSIA and Vitol are stepping up efforts to collaborate with domestic non-governmental organisations with experience of having completed similar projects that have had proven social impact and furthered the United Nations Millennium Development Goals.

The initiative aims to garner “voluntary market carbon capital from the partners and the third parties” in a bid to support the drive towards a more equitable energy transition on the continent and provide sustainable climate solutions for all.

“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 ESG strategy,” said NSIA CEO Uche Orji.

“NSIA expects that its 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 emissions reduction results.”

Carbon credit, a tradeable permit that enables the holder to emit a particular quantity of carbon dioxide or other greenhouse gases, is one of the latest financial products used by the global energy industry to fight climate change.

Last week, Africa’s seventh biggest oil producer Gabon said it hopes to sell 90 million of the 187 million carbon credits it plans to create between now and the COP27 meeting scheduled for November in Cairo. That is worth $275 million in money terms.