…FG Targets $3Bn Yearly Revenue From Market By 2030
President Bola Tinubu has approved the implementation of Nigeria’s carbon market framework from which the government plans to generate at least $3 billion annually from 2030.
Director-General of the National Council on Climate Change (NCCC), Mrs. Tenioye Majekodunmi, who gave this hint, said that the implementation of the framework had the potential of positioning Nigeria at the forefront of the global carbon trading market, and by so doing creating opportunities for large-scale emission allowance transactions across multiple sectors of the economy.
According to the Director-General, the initiative will tap into emissions-reduction opportunities in energy, agriculture, forestry, waste, and industrial sectors with the attendant implications for greener landscape in the country.
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Speaking on the initiative during an interactive session with journalists, the NCCC boss maintained that Nigeria would prioritize participation in the voluntary carbon market and international trading and gradually be introducing a domestic emissions trading system and carbon tax.
Majekodunmi stressed that the policy was designed to rapidly expand Nigeria’s carbon project pipeline while ensuring international quality standards are met.
She clarified: “Operationalizing 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.”
Majekodunmi listed some of the policy features and incentives of the new framework as including the launch of a national carbon registry, mandatory emissions reporting for companies, and phased compliance mechanisms aligned with Nigeria’s climate plan, which commits to emissions cuts by 2035 and net zero by 2060.
Others are tax exemptions on carbon credit revenue for up to 10 years, accelerated capital allowances for low-carbon assets, and Research and Development (R&D) deductions tied to emissions-reduction projects.
According to her, these measures aim to eliminate structural risks that have previously constrained investment in carbon markets.
Available official data indicated that currently Nigeria already had 57 registered voluntary carbon projects, concentrated in household energy, renewable power, and forestry.
The government data further reflected that 5.8 million tons of credits had been issued so far, with the new framework designed to expand the credits while enforcing international quality standards.
Globally, carbon credits represent one metric ton of CO₂ avoided, reduced, or removed from the atmosphere through reforestation and other climate projects.
It would be recalled that the Federal Government had, in November 2025, unveiled a fiscal plan to generate up to $3 billion yearly in climate finance through its National Carbon Market Framework and Climate Change Fund.
The Vice President, Sen. Kashim Shettima, gave the hint during a high-level thematic session titled “Climate and Nature: Forests and Oceans” at the United Nations Climate Change Conference (COP30) in Belem, Brazil.
Shettima maintained at the forum that Nigeria’s climate strategy was anchored in restoring balance between nature, development, and economic resilience.
