President Bola Ahmed Tinubu has approved the full implementation and operationalisation of Nigeria’s Carbon Market Framework, a landmark climate policy projected to generate at least $3 billion annually by 2030.
The approval positions Nigeria as a leading player in global carbon trading, opening the country to large-scale emission allowance transactions across key sectors of the economy.
Under the new framework, Nigeria will establish a national carbon registry to ensure transparency, accountability, and credibility in carbon credit issuance and trading.
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The policy also introduces mandatory emissions reporting for companies, alongside phased compliance mechanisms aligned with Nigeria’s climate commitments to reduce emissions by 2035 and achieve net-zero emissions by 2060.
To attract investment and stimulate market growth, the framework provides a range of fiscal incentives, including tax exemptions on carbon credit revenues for up to ten years.
According to policy officials, the measures are designed to remove long-standing structural and regulatory risks that have previously constrained investment in Nigeria’s carbon market ecosystem.
The framework is expected to unlock private capital, promote cleaner technologies, and create new revenue streams while supporting Nigeria’s broader energy transition and climate action goals.
With its implementation, Nigeria joins a growing group of emerging economies leveraging carbon markets as a tool for sustainable development, climate finance mobilisation, and economic diversification.
