The Nigerian Sovereign Investment Authority (NSIA) plans to enhance its existing $50 million carbon credits programme in collaboration with Swiss energy firm Vitol SA.
In April 2023, NSIA and Vitol SA completed a joint venture agreement to invest in a range of carbon avoidance and removals projects through the CarbonVista programme. An initial $50 million (NSIA; $20 million, Vitol SA; $30 million) was committed, to attract new investors as the partners develop the project pipeline.
The Chief Executive Officer of NSIA, Aminu Umar Sadiq, told Bloomberg that the programme’s portfolio could potentially expand to encompass half a million, although NSIA intends to assess the performance of the current $50 million program before proceeding with such significant growth. The programme intends to sell the credits to a unit of Saudi Arabia’s sovereign wealth fund, showcasing NSIA’s recognition as a key player in driving climate-conscious initiatives.
Each carbon credit represents a ton of climate-warming carbon dioxide, or its equivalent removed from the atmosphere or prevented from entering it in the first place.
CarbonVista intends to focus on efficient wood stoves, water purification, and re-afforestation projects to earn credit. African countries from Zimbabwe and Malawi to Gabon and Kenya are seeking to benefit more from the production of the offsets.
NSIA CEO also revealed plans to invest $100 million in an ammonia plant with Morocco’s OCP SA in southern Nigeria, with a total project cost of up to $1.6 billion.
