By Udeme Akpan, Obas Esiedesa & Sabastine Obasi, Abuja
Group General Manager, National Petroleum Investment Services, NAPIMS, Bala Wunti has disclosed that the Nigerian National Petroleum Corporation, NNPC, working with Total Nigeria was able to market and monetize Nigeria’s carbon credit, earning about one million Euros for the country.
Wunti who disclosed this in Abuja on Wednesday at the ongoing at the Nigeria Petroleum Summit said that opportunities abound in the sector if an industry wide attempt is made for all International Oil Companies and other players take steps on their carbon footprint.
He explained that oil and gas projects must going forward allow opportunity for reduced emission to enable the country earn positive credit.
According to him, “Through our partnership with Total, we are able to market our credit position, and monetize it. And we have an overall €1 million so far.
“This is the first recorded carbon credits proceeds we are receiving on behalf of the Government of Nigeria by the partnership between NNPC and Total”.
He explained further that soon the world will know exactly what potential Nigeria can make from carbon credit as the entire industry transitions.
Wunti added that the Group Managing Director of NNPC, has already “directed that we’ll do whatever we can with our partners to make sure that we monetize that credit position for the benefit of Nigerian people.
“The business model is simple, any project that allows you the opportunity to have a reduced emission, you get a positive credit for it. You accumulate this credit. You can use it in several ways, two major ways is either you use your positive carbon credit position to offset your negative position in our businesses.
“And so we create carbon neutrality, or if you have an excess carbon credit, you don’t have a need to use to upset your negative credit you can monetize it for someone who is in negative position”.
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Wunti expressed concerns over the level of insecurity and its impacts on the sector, adding that the Petroleum Industry Bill remained critical.
“We talk about the PIB. It will remove uncertainty and bring clarity and competitiveness,” adding that such step would reduce cost.
He said the implementation of the Nigerian Upstream Optimization Programme would be vigorously pursued to ensure that the sector makes necessary profit. He argued that given current challenges in the sector, it remained elusive for investors to stake their money unless there is clarity as well as attractive returns.
“We need to attack the security challenges,” adding that without sustainable solutions insecurity would increase expenses in the sector.