Nigerian Government, Vitol sign agreement on Carbon Vista Deal

The Nigeria Sovereign Investment Authority (NSIA) and Vitol S.A. have agreed to establish a Joint Venture (JV) to invest in a range of projects. Both parties have agreed to make an initial commitment of $ 50 million to this new venture.

The agreement which was signed at the Presidential Villa, Abuja on Tuesday, was presided over by Vice President Yemi Osinbajo.

…towards a more equitable energy transition for Nigeria and indeed Africa. pic.twitter.com/B4Udy774pk

— Prof Yemi Osinbajo (@ProfOsinbajo) April 10, 2023

During the signing ceremony, Prof, Osinbajo said: “Carbon Vista is designed to create investor exposure to voluntary carbon markets across a variety of projects with exposure to different income streams and ancillary impact benefits.

“Some have said the death of the planet will come with the neglect of the planet. A few weeks ago, the Intergovernmental Panel on Climate Change (IPCC) released a report warning that global warming might attain 1.5°Celsius much earlier than expected even possibly in the 2030s.

“The Energy Transition Process is a tough process; especially tough for those of us who are from gas-rich countries and fossil fuel-rich countries. For countries like ours rich in fossil fuel, we also find ourselves in a situation where we are energy poor.

“I believe Africa can become the first truly green civilisation – the first civilisation on earth to use renewable fuel for purposes of a transformative economic journey.

“I am excited about the collaboration and I must thank Mr Aminu Umar-Sadiq (MD, NSIA) as well as Mr Michael Curran (Global Head of Carbon and Environmental Products for Vitol) for their commitment to developing the African Carbon Market, especially the Nigeria Carbon Market. 

“I understand the CarbonVista Fund will partner with local institutions with a track record of successfully delivering high-quality projects. I also understand the Initiative will seek to mobilize voluntary market carbon capital from the JV partners and potential third parties towards a more equitable energy transition for Nigeria and indeed Africa.”

Nigeria’s Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed commended the initiative noting that “Carbon Vista aligns with the several key priorities of the Federal Government of Nigeria including the quest to grow the country’s Foreign Direct Investment stock, develop a new market that enhances the economy and maximize the country’s abundant natural resources. These priorities are crucial to driving sustainable growth and development and also Carbon Vista’s commitment to these goals is commendable.”

Also, the Managing Director and CEO of NSIA, Mr Aminu Umar-Sadiq thanked the Vice President for his exceptional leadership in spearheading Nigeria’s Energy Transition ambitions and for hosting the ceremony which officially launches the agency’s newest investment vehicle in the environmental sector.

Speaking about the Carbon Vista initiative, Mr Umar said: “It aims to support Nigeria in meeting its net-zero targets by investing in carbon avoidance and removal projects in Nigeria, that deliver significant socioeconomic benefits to Nigerians and promote the United Nations (UN) Sustainable Development Goals.”

Vitol’s Global Head of Carbon and Environmental Products, Mr Michael Curran, spoke about the uniqueness of the Carbon Vista initiative, noting that “if you step outside the norm, people can criticize. The easiest thing to do is to stay within your tracks and not do anything new or any initiatives which are bold.” 

“We are prepared to do both things, the importance of doing this is simultaneously linked with climate change, the objectives of Nigeria for 2060 and the realization of the reality that commercial growth that benefits the population also has to take into consideration the transition, the desire to make sure that we can still grow, the people can have benefits but done in a sustainable manner.”