People & Money

NSIA and Vitol Group Launch Venture to Invest in Carbon Removal

NSIA has announced the establishment of a partnership with the Dutch multinational energy trading corporation, Vitol Group, aimed at investing in various carbon avoidance and removal initiatives. According to NSIA, they have committed an initial $50 million and both companies are currently in the process of making a final investment decision on their first projects.

Also Read: Agriculture: Nigeria To Take Delivery Of 105,000 Tonnes Of Fertiliser Raw Material From Russia, Canada – NSIA

The idea for the new entity called CarbonVista was initially proposed in July 2022. It was proposed to invest solely in projects within Nigeria. The statement indicated that the initial investment would focus on a program to enhance clean cooking and water filtration in households through improved energy efficiency.

According to NSIA, the partnership will offer efficient devices to rural households that will help minimize wood fuel consumption, and greenhouse gas emissions, and also save them money and time. The company intends to distribute up to 200,000 devices in the initial phase.

By 2027, Nigeria aims to have 30 million households adopt the use of liquefied petroleum gas (LPG), commonly known as cooking gas. However, despite the increasing demand for smokeless liquefied petroleum gas (LPG), the rising costs have compelled many Nigerians to supplement their cooking needs with wood and charcoal, and according to the NBS, solid biomass is utilized in 65% of Nigerian households.

Also Read: Nigeria To Introduce A Carbon Tax System To Increase Revenue Generation

The expense of gas is already a considerable obstacle to adopting cleaner cooking practices, and the cylinders present an even greater challenge. TheCable’s investigation uncovered that the 3kg gas cylinder, the smallest size available, typically carries a price tag of N10,000 to N15,000. Meanwhile, a 5kg cylinder costs roughly N15,000, but the addition of a gas burner can drive up the cost to N20,000. The cost of a cylinder weighing 10 kg varies from N25,000 to N40,000, depending on the brand. On the other hand, a cylinder weighing 12.5 kg costs between N28,000 and N45,000.

David Olujinmi

David Olujinmi studies Engineering but his true passion is research and analysis. He writes about finance, particularly the capital market, investment banking, and asset management. More »

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