Nigeria has unveiled a newly activated carbon market framework that President Bola Tinubu says could generate between $2.5 billion and $3 billion annually over the next decade, injecting fresh momentum into the country’s climate finance strategy, as reported by local newspaper The Guardian.
Tinubu outlined the initiative on Tuesday while speaking to world leaders and investors at the 2026 Abu Dhabi Sustainability Week, describing it as central to strengthening climate governance and attracting investment into low-carbon sectors.
The core of the approach rests on the National Carbon Market Activation Policy and the launch of a National Carbon Registry, designed to boost emissions reporting, verification and transparency, according to a statement, released by Nigeria’s State House on Wednesday.
The framework was formally approved in October 2025, and the government has also operationalized a $2 billion Climate Change Fund and restored funding to the National Council on Climate Change to support implementation.
The policy aims to incentivize climate projects across forestry, renewable energy, clean cooking technologies and agricultural practices—all of which can produce carbon credits for domestic and global trading.
Relevant: Nigeria Initiates ‘National Carbon Market Activation Plan’ To Tap Into $2.5 Billion Opportunity
Nigeria already hosts dozens of voluntary carbon projects, but officials say the new framework will significantly expand the carbon project pipeline and enhance quality standards.
“Nigeria feels at the heart of development opportunity,” Tinubu was quoted as saying in Abu Dhabi, adding that a broader climate and green industrialization investment push could unlock $20 billion to $30 billion annually in wider climate finance.
Analysts note that credible carbon credit generation and transparent market architecture are pivotal for tapping international buyers seeking high-integrity emissions reductions.
As Nigeria looks to expand its footprint in global carbon markets, the new framework could also bolster the country’s broader energy transition plan and position it as a climate finance hub in Africa.
