Stakeholders in Nigeria’s carbon market, comprising representatives from government ministries and agencies, the Central Bank of Nigeria, academia, and the private sector, have expressed a unified commitment to ensure a Nigerian carbon policy to help the country maximize its carbon market potential.
The resolution was made at a workshop convened in Abuja on 20 January 2025 by the Environment for Development (EfD) Nigeria in collaboration with the National Council on Climate Change (NCCC).
Participants at the workshop noted that Nigeria’s carbon market faces several challenges, including regulatory gaps, limited public and stakeholders’ awareness, limited capacity and infrastructure, and the need for a comprehensive framework to guide market development. However, they agreed that a comprehensive policy framework would be fundamental in overcoming these hurdles.
Photo: Inya Agha Egwu
Regulation will make voluntary carbon markets viable
Discussions at the workshop centered on papers presented by EfD Nigeria researchers Nnaemeka Chukwuone and Chizoba Oranu on the voluntary carbon market, which offers a platform for individuals, organizations, and entities to voluntarily offset their greenhouse gas (GHG) emissions by investing in emission reduction or sequestration projects.
The session highlighted the immense potential of Nigeria's carbon market, which experts believe could generate over $2 billion by 2030 if a regulatory framework is enacted to protect investors.
The regulatory guidance on the Nigerian carbon market states that participation in the voluntary carbon market will be based on government policies and development priorities. However, the country has yet to legalize a comprehensive carbon policy that will promote participation and build investors' confidence.
Photo: Inya Agha Egwu
The Director and Chief Executive Officer of Nigeria’s National Council on Climate Change (NCCC), Dr Nkiruka Maduekwe said that relevant government ministries are reviewing Nigeria’s draft carbon market policy and that her agency will not relent until the document becomes a legal instrument.
“I consider the research by EfD Nigeria very important because it gives the government the baseline to understand the status of Nigeria in the voluntary carbon market,” said Nkiruka Madueke, the Director General of NCCC.
Part of a multi-country study on the carbon markets
The workshop kicked off the process of engaging Nigerian stakeholders in a broader, multi-country EfD’s research initiative titled Exploring the Potential and Challenges of Carbon Markets in Developing Countries. The study is a 30-month project that aims to understand the opportunities and threats of voluntary carbon markets in the Global South.
“Although this research project is international in scope, it will have direct implications for Nigeria’s policy development and carbon market strategies,” said Nnaemeka Chukwuone, the Director of EfD Nigeria.
Photo: Inya Agha Egwu
Nnaemeka Chukwuone said that a well-structured carbon market framework for Nigeria will attract vital investments and unlock immense financial opportunities.
EfD Nigeria and NCCC will continue to work closely with relevant stakeholders to ensure the rapid advancement of Nigeria’s carbon market policies and create a sustainable pathway for climate action in the country.