The Federal Government of Nigeria has taken a significant step towards establishing a structured system for carbon market operations in the country by approving the carbon market framework objectives. This move is in line with the world's efforts to transit towards climate finance and support greenhouse gas emission reductions. The approval was announced at the National Stakeholder Review and Validation Workshop on the draft host country approval criteria for Nigeria’s carbon market operations, held in Abuja.
According to Professor Simon Uchenna Ortuanya, Vice Chancellor of the University of Nigeria, Nsukka (UNN), the approval represents an important milestone in Nigeria's journey towards a low-carbon economy. Ortuanya, represented by Dr Nnaemeka Chukwuone, Director of Resource and Environmental Policy Research Centre, UNN, emphasized that the next task is to ensure the framework is supported by clear, practical, and transparent host country approval criteria. These criteria will provide guidance on the eligibility, screening, and assessment of carbon market projects.
The host country approval criteria will clarify institutional responsibilities, approval procedures, measurement, reporting, and verification requirements, as well as environmental and social safeguards. Additionally, the criteria will ensure alignment with Nigeria’s Nationally-Determined Contribution (NNDC) registry and transparency arrangements, and carbon accounting. Ortuanya noted that the criteria should be robust enough to protect Nigeria's interests while being practical, predictable, and responsive to implementation realities.
Dr Omotenioye Majekodunmi, Director General of the National Council on Climate Change (NCCC), declared that having approved the carbon market framework, stakeholders must now establish post-country approval criteria that protect Nigeria's national interests. She emphasized that Nigeria must participate in carbon markets on terms that are credible, transparent, equitable, and beneficial to the people. Majekodunmi stressed that carbon projects must deliver genuine mitigation outcomes, contribute to sustainable development, respect host communities, and promote social inclusion.
Professor Adeola Adenikinju, Scientific Adviser to PEP, noted that the global carbon market presents significant opportunities for countries seeking to mobilize climate finance and support greenhouse gas emission reduction. For Nigeria, these opportunities are particularly important as the country pursues economic growth, industrial development, energy access, and poverty reduction while addressing climate change challenges. A well-governed carbon market can help mobilize resources required to support poverty reduction and grow the economy.
The approval of the carbon market framework and the development of host country approval criteria are crucial steps towards ensuring that Nigeria benefits from carbon market operations. The framework will provide a structured system for carbon market projects, ensuring that they align with Nigeria's climate and development priorities. This move is expected to attract credible investors and project developers, ultimately contributing to Nigeria's sustainable development.
The implementation of the carbon market framework is expected to have a positive impact on Nigeria's economy and environment. With a well-governed carbon market, Nigeria can mobilize climate finance, reduce greenhouse gas emissions, and accelerate its transition to a low-carbon economy. The Federal Government's approval of the framework demonstrates its commitment to addressing climate change and promoting sustainable development in the country.
Key points
- Nigeria's Federal Government has approved a carbon market framework to support greenhouse gas emission reductions and accelerate transition to a low-carbon economy.
- The framework will provide guidance on the eligibility, screening, and assessment of carbon market projects, ensuring that they align with Nigeria's climate and development priorities.
- A well-governed carbon market can help mobilize resources required to support poverty reduction and grow the economy.
