Nigeria has progressed in implementing its carbon market framework by setting specific criteria for determining which carbon projects the government will approve. The National Council on Climate Change held a stakeholder workshop in Abuja to review and validate the draft Host Country Approval Criteria for Nigeria’s Carbon Market Operations. This development is a crucial step toward operationalizing the framework.
The National Council on Climate Change Director-General, Omotenioye Majekodunmi, stated that Nigeria had secured approval for the carbon market framework. The focus now is on establishing approval criteria that safeguard national interests while providing certainty for credible investors and project developers. This balance is essential for the success of the initiative.
The University of Nigeria, Nsukka Vice-Chancellor, Simon Uchenna Ortuanya, represented by Professor Nnaemeka Chukwuone, highlighted that the approval criteria will guide the eligibility, screening, and assessment of carbon market projects. The development of these criteria was informed by sound research, ensuring a robust foundation for the carbon market operations.
The process began nearly a year ago, following President Bola Tinubu’s approval of the National Carbon Market Framework in October 2025. The framework’s full implementation was signed off in January 2026, with the National Council on Climate Change overseeing the initiative. The council is chaired by the President and supported by a dedicated carbon market office.
The government projects that the framework could unlock $2.5 billion to $3 billion annually in carbon finance over the next decade. This initiative positions carbon trading as a significant driver of non-oil revenue. The framework covers sectors such as forestry, energy, and agriculture, aligning with Article 6 of the Paris Agreement.
The host country approval criteria are a practical mechanism for determining which offset or reduction projects the government will authorize to sell credits internationally. Effective implementation of these criteria is designed to prevent issues that have undermined voluntary carbon markets, such as projects with questionable integrity and weak enforcement.
The success of Nigeria’s final approval criteria in attracting investment while maintaining international credibility will determine the actual realization of the projected $2.5 billion to $3 billion. Stakeholders are optimistic that the initiative will drive significant revenue and contribute to Nigeria’s climate change mitigation efforts.
Key points
- Nigeria establishes criteria for approving carbon projects under its carbon market framework
- The framework aims to unlock $2.5 billion to $3 billion annually in carbon finance
- Effective implementation is crucial to preventing issues that have undermined voluntary carbon markets
