President Bola Tinubu has authorized the implementation and operationalization of Nigeria’s carbon market framework, a landmark coverage anticipated to generate no less than $3 billion yearly by 2030.
This was disclosed by Tenioye Majekodunmi, Director-Normal of the Nationwide Council on Local weather Change (NCCC).
The framework positions Nigeria on the forefront of carbon buying and selling, opening the door to large-scale emission allowance transactions throughout a number of sectors.
What the federal government is saying
In accordance with the federal government, the initiative will faucet into emissions-reduction alternatives throughout power, agriculture, forestry, waste, and industrial sectors.
Majekodunmi advised reporters that Nigeria will prioritize participation within the voluntary carbon market and worldwide buying and selling, whereas progressively introducing a home emissions buying and selling system and carbon tax.
“Operationalizing the framework is a sign that carbon markets are a key a part of the nation’s financial technique, in addition to a software for attracting international capital, supporting the power transition and anchoring Africa’s function in world local weather finance,” Majekodunmi stated.
Coverage Options and Incentives
The brand new framework consists of:
- Launch of a nationwide carbon registry.
- Necessary emissions reporting for corporations.
- Phased compliance mechanisms aligned with Nigeria’s local weather plan, which commits to emissions cuts by 2035 and internet zero by 2060.
- Tax exemptions on carbon credit score income for as much as a decade.
- Accelerated capital allowances for low-carbon property.
- R&D deductions tied to emissions-reduction tasks.
These measures goal to get rid of structural dangers which have beforehand constrained funding in carbon markets.
Present carbon market panorama
Nigeria already has 57 registered voluntary carbon tasks, concentrated in family power, renewable energy, and forestry.
Authorities information exhibits 5.8 million tons of credit issued up to now, with the brand new framework designed to quickly increase this pipeline whereas imposing worldwide high quality requirements.
Oversight will relaxation with the NCCC, chaired by the President, and supported by a devoted carbon-market workplace liable for challenge approvals, registries, authorizations, and market supervision.
World context
Carbon credit symbolize one metric ton of CO₂ averted, decreased, or faraway from the environment via tasks reminiscent of reforestation. BloombergNEF tasks that world carbon credit score provide might develop 20-to-35 fold by 2050, pushed by a market reset targeted on integrity and impression.
Different African nations, together with Zimbabwe, Kenya, and Malawi, have additionally taken steps to control carbon offset industries. Nonetheless, confidence in world carbon markets has waned, with the market shrinking by two-thirds since 2021 amid issues over challenge high quality and decreased company local weather commitments.
The framework allows public-private partnerships and bilateral cooperation, doubtlessly opening Nigeria’s credit to sovereign and company patrons in search of compliance-grade offsets.
Majekodunmi emphasised that the coverage is designed to “quickly increase Nigeria’s carbon challenge pipeline whereas guaranteeing worldwide high quality requirements are met.”
What you must know
Nigeria had, in November 2025, unveiled an formidable plan to mobilize as much as $3 billion yearly in local weather finance via its Nationwide Carbon Market Framework and Local weather Change Fund, positioning itself as a pacesetter in nature-positive funding throughout the World South.
Vice President Senator Kashim Shettima made the announcement throughout a high-level thematic session titled “Local weather and Nature: Forests and Oceans” on the United Nations Local weather Change Convention (COP30) in Belem, Brazil.
Shettima stated on the time that Nigeria’s local weather technique is rooted in restoring stability between nature, growth, and financial resilience.
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