- Nigeria’s Carbon Market Framework sets rules for carbon credit trading.
- The framework supports investment in renewable energy, reforestation, and climate-smart projects.
Nigeria officially launched its Carbon Market Framework during Abu Dhabi Sustainability Week (ADSW 2026). This marks a significant step forward in the country’s climate action strategy. Moreover, the initiative signals Nigeria’s ambition to become a key player in the global green economy.
President Bola Ahmed Tinubu highlighted the announcement in his address to world leaders and investors. The framework builds on the National Carbon Market Framework, which was approved in October 2025.
Notably, it establishes clear rules for the registration, issuance, verification, and trading of carbon credits. The government supports the framework with the National Carbon Market Activation Policy (NCMAP) and a National Carbon Registry, which will improve emissions reporting and transparency.
The National Council on Climate Change (NCCC), led by Director-General Mrs Omotenioye Majekodunmi, described the framework as a robust regulatory and institutional structure. Consequently, local and international investors can finance and implement climate-smart projects across various sectors. These sectors include renewable energy, clean cooking solutions, reforestation, climate-smart agriculture, and sustainable infrastructure. All projects generate carbon credits.
Mrs Majekodunmi hailed the launch as a clear signal that “Nigeria is now open for climate business.” She projected that the carbon market could attract over $3.8 billion in annual investment. Meanwhile, President Tinubu emphasised that the initiative could unlock between $2.5 billion and $3 billion annually over the next decade. He stressed that climate action can become a central driver of economic growth and sustainable development.
Minister of Environment Balarabe Abbas Lawal underscored Nigeria’s commitment to strengthening international partnerships, especially with the UAE, through active participation at ADSW. He highlighted priorities such as technology transfer, innovation, and building local capacity to advance clean energy, resilient infrastructure, and climate-smart agriculture nationwide.
The framework, along with measures such as the $2 billion Climate Change Fund, enables Nigeria to translate its climate commitments into tangible economic opportunities. These include job creation and substantial inflows of green finance. Overall, the initiative positions Nigeria to meet future global climate goals while boosting its economy.