Crossword Genius

Capital o’ vakia or venia? (4)

Ross

I believe the answer is:

oslo

I'm a little stuck... Click here to teach me more about this clue!

'capital' is the definition.
(capital of Norway)

'o' vakia or venia?' is the wordplay.
I cannot quite see how this works, but
'o'' could be 'o' and 'o' is found in the answer.
The remaining letters 'slo' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...

Can you help me to learn more?

(Other definitions for oslo that I've seen before include "Capital in throes of go-slow" , "Northern city" , "Scandinavian capital" , "Scandinavian port" , "City in Norway" .)

I've seen this clue in The Guardian.
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