The Nigeria Sovereign Investment Authority (NSIA), managers of Nigeria’s Sovereign Wealth Fund, and Vitol have completed a joint venture agreement to invest in a range of carbon avoidance and removals projects.
According to a statement by the compnies, an initial $50 million has been committed to Carbon Vista, the joint venture company, to attract new investors as the partners develop the project pipeline.
The JV will commence with projects in Nigeria, partnering with local firms with proven track records of successfully delivering high-quality projects, combining carbon offsetting with social outcomes that contribute to attaining UN Sustainable Development Goals. Its investments will focus on infrastructure, agriculture, and energy.
Aminu Umar-Sadiq, managing director/CEO of NSIA, said that given the NSIA’s mandate as the custodian of economic resources for the next generation of Nigerians, tackling climate risks that have adverse effects on the environment is core to the implicit objectives of the Authority.
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“NSIA’s sustainability objectives go beyond seeking out profitable investments that incorporate climate solutions, but more pressingly to mitigate activities that could have an adverse impact on the well-being of the next generation,” he said.
To achieve this objective, Umar-Sadiq said the Authority had implemented a three-fold sustainability strategy that firstly addresses sustainability at an institutional level.
“Secondly, NSIA embeds ESG practices in its investment process while advancing climate solutions that help to lower Nigeria’s carbon footprint, and lastly builds partnerships with other institutions to support Nigeria’s overall goal of achieving net-zero emissions by 2060,” he said.
According to Umar-Sadiq, the NSIA acknowledges the significant resources required to undertake green projects that deliver appreciable social impact and have partnered with Vitol to set up CarbonVista as a platform for developing quality projects and attracting third-party capital.
Umar-Sadiq added that the NSIA expects this partnership to morph into a platform that catalyses the carbon trading market, encourages green project development, and attracts significant third-party capital into the ESG space in Nigeria.
