ABUJA, Jan 13 (AGCNewsNet) – President Bola Tinubu has approved the implementation and operationalisation of Nigeria’s National Carbon Market Framework, a landmark climate policy projected to generate at least $3 billion annually by 2030 and position the country as a major player in global carbon trading.

The approval was disclosed on Tuesday by the Director-General of the National Council on Climate Change (NCCC), Tenioye Majekodunmi, who said the framework places Nigeria at the forefront of carbon markets in Africa and opens pathways for large-scale emissions trading across multiple sectors.

Majekodunmi explained that the initiative would unlock emissions-reduction opportunities in energy, agriculture, forestry, waste management and industrial activities, while attracting foreign investment and supporting Nigeria’s energy transition.

“Operationalising the framework is an indication that carbon markets are a key part of the country’s economic strategy, as well as a tool for attracting foreign capital, supporting the energy transition and anchoring Africa’s role in global climate finance,” she said.

Under the framework, Nigeria will initially prioritise participation in voluntary and international carbon markets, with plans to gradually introduce a domestic emissions trading system and a carbon tax. Oversight of the market will rest with the NCCC, which is chaired by the President and supported by a dedicated carbon market office responsible for project approvals, registries, authorisations and market supervision.

Key policy features include the launch of a national carbon registry, mandatory emissions reporting for companies, and phased compliance mechanisms aligned with Nigeria’s climate commitments, which include emissions reductions by 2035 and achieving net-zero emissions by 2060.

To stimulate investment, the framework provides incentives such as tax exemptions on carbon credit revenues for up to 10 years, accelerated capital allowances for low-carbon assets, and research and development deductions linked to emissions-reduction projects. Officials say these measures are designed to remove structural risks that have previously constrained carbon market investments.

Nigeria currently has 57 registered voluntary carbon projects, mainly in household energy, renewable power and forestry. Government data shows that about 5.8 million tonnes of carbon credits have been issued so far, with the new framework expected to rapidly expand the project pipeline while enforcing international quality standards.

Globally, carbon credits represent one metric tonne of carbon dioxide avoided, reduced or removed from the atmosphere through activities such as reforestation and clean energy deployment. BloombergNEF projects that global carbon credit supply could grow between 20 and 35 times by 2050, although confidence in the market has declined in recent years due to concerns over project quality and reduced corporate climate commitments.

Despite these challenges, Nigeria’s framework enables public-private partnerships and bilateral cooperation, potentially opening the country’s carbon credits to sovereign and corporate buyers seeking compliance-grade offsets.

The approval follows Nigeria’s announcement at the UN Climate Change Conference (COP30) in November 2025, where Vice President Kashim Shettima unveiled plans to mobilise up to $3 billion annually through the National Carbon Market Framework and Climate Change Fund.

Shettima said Nigeria’s climate strategy is anchored on restoring balance between nature, development and economic resilience, positioning the country as a leader in nature-positive investment across the Global South.

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