State-run Nigerian Sovereign Investment Authority (NSIA) and Swiss-based commodity trading company Vitol have completed a joint venture (JV) to invest in carbon avoidance and abatement projects.

The entities are close to making a final investment decision on the first projects, the authority said in a statement.

An initial $50 million has been committed to attracting new investors as the partners develop the project pipeline.

The joint venture will commence with projects in Nigeria, partnering with local firms for carbon offsetting in line with the UN Sustainable Development Goals. Investments will focus on various sectors, including infrastructure, agriculture, and energy.

The JV will seek to mobilise capital from funding partners to the voluntary carbon market in support of the effort of the Nigerian government toward a more equitable energy transition for Africa.

The first investment will be in a household energy efficiency programme, including improved clean cooking and water filtration devices.

The project’s initial scope is to deploy up to 200,000 devices of each, the statement said.

(Editing by Seban Scaria seban.scaria@lseg.com )