The Nigeria Sovereign Investment Authority (NSIA) has signed a Memorandum of Understanding with the National Council on Climate Change (NCCC) to address the impact of climate change to the country.

While the NSIA is saddled with the responsibility of managing the country’s Sovereign Wealth Fund, the NCCC is the country’s implementing entity for climate action.

Speaking while signing the agreement at an event on Monday in Abuja, Managing Director and Chief Executive Officer,(NSIA), Mr Aminu Umar-Sadiq stated that; “A core pillar of our Environmental, Social and Governance (ESG) strategy is to actively build strategic partnerships with relevant organizations to support climate change actions and Nigeria’s energy transition ambitions of achieving net zero emissions by 2060.”

He said the agreement serves as one of the strategic steps being taken to meet the Authority’s social impact goals and sustainability commitments, adding that; “NSIA’s maiden Impact Report highlights the Authority’s development agenda and impact over several years of operations”.

Umar-Sadiq further explained that the Impact Report has also detailed the “Authority’s efforts to safeguard the environment and address relevant climate-related risks and opportunities in line with best practice.

“The Report chronicles major interventions of the agency in the last decade which spans across different sectors like power, healthcare among others.”

He said the NSIA is rolling out an energy transition plan that will facilitate the production of solar energy across the country.

“We are putting forward a renewable energy plan that will eventually as the platform to proliferate solar production similar to those that were commissioned in Kano in January this year and also to distribute to locations where they are required and the partnership with the NCCC is important especially for an economy like Nigeria that want to advance efforts in energy transition.”

On the financial commitments of the agreement, the NSIA boss said, “Whatever it takes for Nigeria to advance its climate course, the strategic partnerships and capital support from NSIA will be deployed,” he said.

In his response at the occasion, the Director General of NCCC, Dr Salisu Dahiru, described the partnership as “a bold signal to the global audience that the Government of Nigeria is serious about its climate commitments.”

According to him; “By committing resources from its Sovereign Wealth Fund (SWF) to support climate action and inclusive green economic growth, Nigeria is investing in its future, especially in a vastly decarbonizing world.

“This partnership between two of Nigeria’s flagship institutions is expected to catalyze private finance to accelerate Nigeria’s ambitious climate and national development agenda”.

The signing of the MoU opens up a vista to explore potential areas of collaboration such as the Development of a climate change framework to provide guidelines for regulating emissions in Nigeria; the Implementation of a carbon emissions trading mechanism in Nigeria; and the Management of a National Carbon Registry and a Climate Change Fund.

The Authority Boss said because Nigeria is not immune to the adverse impact of climate change, the partnership with NCCC and other relevant stakeholders will not only be robust but also strengthened in terms of capacity building and resource mobilisation to promote Nigeria’s development in the areas of job creation, social welfare, and socio-economic growth.