- Nigeria could unlock $2.5 billion annually through a credible solar carbon market.
- Experts urge stronger policy execution and transparent carbon certification systems.
Energy and climate experts have called on the Federal Government to expand Nigeria’s solar carbon market through more substantial investments and clear policy incentives. They argue that large-scale solar projects could unlock $2.5 billion in annual carbon credit opportunities and boost Nigeria’s position in global carbon trading.
Dr Sunday Okoro, a renewable energy consultant based in Abuja, described solar energy as Nigeria’s fastest path to monetising emission reductions. He said every tonne of carbon dioxide avoided through solar generation can be traded as carbon credits. He added that tax incentives, simplified licensing, and transparent certification rules could attract private investors and strengthen Nigeria’s global participation.
Similarly, Mrs Aisha Bulila, Managing Director of SolarTech Renewables, noted that Nigeria’s strong solar potential remains largely untapped. She said scaling up solar installations would cut diesel dependence, power rural areas, and open new carbon revenue channels.
Nigeria’s Energy Transition Plan targets net-zero emissions by 2060. Yet, progress remains slow, especially in rural electrification. Data from the Rural Electrification Agency shows Nigeria needs five million solar systems to power underserved communities. Achieving even half that could generate millions of tradable carbon credits and attract foreign investment.
Policy analyst Ibrahim Danjuma warned that the country’s carbon market will stay underused until renewables are integrated into emissions accounting. He explained that Nigeria’s solar carbon market could bring in billions if transparency and monitoring improve.
Clean energy investor Temidire Fajuyi said carbon finance could make solar projects commercially attractive by drawing global capital. He noted that renewable expansion would create jobs, strengthen energy security, and drive green investment.
However, experts emphasised that integrity and transparency are essential. Climate finance consultant Dr Adaobi Eke said only verified credits attract genuine buyers. She urged Nigeria to adopt international standards such as Verra’s Verified Carbon Standard and the Gold Standard for credibility.
It’s noteworthy that the Federal Government has renewed its climate finance commitment. President Bola Tinubu recently approved the National Carbon Market Framework and reactivated the Climate Change Fund. His administration hopes to generate between $2.5 billion and $3 billion yearly through verified carbon trading.
Experts maintain that quick and effective policy implementation will decide whether Nigeria captures this opportunity or trails nations like Kenya and South Africa.