Nigeria Takes Bold Steps to Enter $2.5 Billion Carbon Market

The Federal Government of Nigeria has initiated plans to establish a robust carbon market, with an estimated value of $2.5 billion. This endeavor comes as Vice President Kashim Shettima officially inaugurated the Intergovernmental Committee on Carbon Market Activation Plan on Thursday.

The newly formed committee aims to develop a comprehensive blueprint for the creation of a sustainable carbon market in Nigeria. According to Stanley Nkwocha, the Vice President’s spokesperson, this initiative aligns with President Bola Ahmed Tinubu’s commitment to reducing Nigeria’s carbon emissions and is supported by the Africa Carbon Market Initiative, which seeks to enhance Nigeria’s participation in the lucrative global carbon market.

Chaired by Mr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, the committee’s establishment follows President Tinubu’s announcement at COP28 in December 2023. During the inauguration ceremony held at the Presidential Villa in Abuja, Vice President Shettima emphasized the administration’s strategy to utilize natural gas as a transitional fuel and highlighted the committee’s pivotal role in shaping a national carbon market strategy.

The implementation of this plan is expected to attract significant investments, facilitate emission reductions, and promote sustainable economic growth in Nigeria. Vice President Shettima emphasized the importance of collaboration and innovation in overseeing Nigeria’s transition to a greener economy, stating, “Our mission is to meet the needs of the present while safeguarding the future.”

The establishment of the Intergovernmental Committee on Carbon Market signifies a major shift towards environmental responsibility and economic diversification in Nigeria. It underscores the government’s commitment to sustainable development and environmental stewardship, positioning the country as a leader in green growth manufacturing and industrialization.

In his remarks, Co-chairman Mr. Zacch Adedeji acknowledged the initiative’s potential for Nigeria’s sustainable development and praised Vice President Shettima’s dedication to advancing Nigeria’s carbon market. He pledged the committee’s close collaboration with the African Carbon Market Initiative to leverage Nigeria’s significant carbon potential, estimated at over $2 billion.

Similarly, Dr. Salisu Dahiru, the Director-General of the National Council on Climate Change, highlighted the proactive approach of the committee since its inception in December 2023. He emphasized the importance of carbon market and trading in mitigating climate change and contributing to global climate management efforts.

The establishment of a carbon market in Nigeria represents a historic milestone in the country’s efforts to address climate change and promote sustainable development. It offers opportunities for increased investment, job creation, and environmental protection, positioning Nigeria as a key player in the global transition to a low-carbon economy.

As the committee embarks on its mission to develop a national carbon market strategy, stakeholders are optimistic about the potential for Nigeria to emerge as a leader in carbon market investment and climate finance. With concerted efforts and collaboration, Nigeria is poised to reap the benefits of a thriving carbon market while contributing to global efforts to combat climate change.