Nigeria's Carbon Market Framework Gets Presidential Approval

 

President Bola Tinubu 

President Bola Tinubu has given the green light for the full operationalization of Nigeria's carbon market framework, a strategic policy expected to generate at least $3 billion annually by 2030. 

This development was announced by Dada Olusegun, Special Assistant to the President on Social Media, via his official X account.

The approval of the carbon market framework is a major milestone in positioning Nigeria as a key player in global carbon trading. The policy is designed to facilitate large-scale transactions of emission allowances across vital sectors of the economy, creating new revenue streams while supporting the country's climate objectives.

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As part of the framework, the government will establish a national carbon registry to ensure transparency and accountability in carbon trading. Additionally, the government will implement mandatory emissions reporting for companies, which will help track progress towards Nigeria's climate targets. The government will also introduce phased compliance measures to support companies in meeting these targets, including emission reductions by 2035 and achieving net-zero by 2060.

To encourage investment in the carbon market, the policy offers several incentives. Companies will be eligible for up to 10 years of tax exemptions on carbon-credit earnings, which will help attract foreign investment and stimulate economic growth. Furthermore, the policy provides for accelerated capital allowances for low-carbon technologies, which will support the adoption of sustainable technologies and reduce greenhouse gas emissions.

The policy also provides for research and development deductions linked to emissions-reduction projects, which will promote innovation and the development of new technologies. These measures aim to address long-standing barriers to investment in carbon markets, strengthen Nigeria's reputation as a climate-smart economy, and attract green financing to support sustainable development.

The implementation of the carbon market framework is expected to create new revenue streams for Nigeria while supporting the country's climate objectives. The policy will also promote sustainable development, create new job opportunities, and stimulate economic growth. With the right policies and incentives in place, Nigeria is poised to become a key player in the global carbon market and attract investment in sustainable development projects.

The development of the carbon market framework is a significant step towards achieving Nigeria's climate targets and promoting sustainable development. The policy will help reduce greenhouse gas emissions, promote the adoption of low-carbon technologies, and support the country's transition to a low-carbon economy. As the country continues to implement the policy, it is expected that Nigeria will become a leader in African carbon markets and a model for other countries to follow.