- The Nigeria Sovereign Investment Authority (NSIA) is launching a joint venture with Vitol to finance sustainable development in Nigeria.
- The two partners also plan to leverage the voluntary carbon market.
Vitol, a crude oil brokerage company, and the Nigeria Sovereign Investment Authority (NSIA), Nigeria’s sovereign wealth fund, create a joint venture for a new initiative to invest in low-carbon initiatives—Nigeria’s sovereign wealth fund. Despite the controversy surrounding this offsetting strategy, Vitol is also expanding into the growing carbon credit market.
However, some major polluters, particularly oil industries, use it to participate in “greenwashing,” which is condemned by environmentalists. Nsia and Vitol want to use carbon credits in any case to fund sustainable development in Nigeria. The two partners will initially invest $50 million in running this unique vehicle. Over the ensuing few years, it is intended to draw in more investors.
Regarding the third issue, Nigeria has adopted a strategy to increase its electrification and installed power capacity by putting an emphasis on renewable energy, particularly hydro and solar. In fact, despite the delays in its construction, the largest solar power plant (10 MWp) in this West African nation was launched a few months ago in Kano State with a $15 million investment.
A domestic energy efficiency program featuring “more efficient” clean cooking and water filtering equipment will be the joint venture’s first project. A study report released by the Open Africa Power 2021 Fellowship Program claims that at least 30 million families in Nigeria still cook over wood fires. This situation accelerates deforestation at an estimated rate of 3.3% per year, according to the African Development Bank (AfDB). Through its program, the joint venture aims to distribute 200,000 eco-friendly stoves in Nigeria.