Nigeria Targets $3bn Annual Revenue From Carbon Markets by 2030

Nigeria has set an ambitious goal of earning up to $3 billion annually from carbon markets by the end of the decade, following the approval of a national carbon market framework by President Bola Tinubu. The plan positions Africa’s largest economy to monetize emission reductions across key sectors, including energy, agriculture, and forestry.

Under the framework, the federal government will first focus on voluntary and international carbon trading before rolling out a domestic emissions trading system and a carbon tax. The policy mandates the creation of a national carbon registry and requires companies to disclose emissions, strengthening Nigeria’s climate commitments to cut emissions by 2035 and reach net-zero by 2060.

Officials say the framework also introduces incentives to attract investors, such as tax exemptions on carbon credit earnings for up to ten years, accelerated allowances for low-carbon assets, and research and development deductions. These measures aim to remove longstanding structural barriers that have limited growth in Nigeria’s carbon market.

Oversight of the market will be handled by the National Council on Climate Change, chaired by the president, with a dedicated carbon-market office managing approvals and compliance. Nigeria currently hosts 57 voluntary carbon projects that have issued nearly 5.8 million credits, and authorities say the new rules will expand project pipelines while enforcing international quality standards.