President Bola Tinubu has approved the comprehensive implementation of Nigeria’s carbon market framework, a significant initiative expected to generate a minimum of $3 billion annually by the year 2030.
Dada Olusegun, Special Assistant to the President on Social Media, shared the news on Thursday via his official X account, @DOlusegun, labeling this decision as a critical advancement for positioning Nigeria as a leader in international carbon trading.
The framework is poised to facilitate substantial transactions in emission allowances across major economic sectors, thereby generating new sources of revenue and promoting the nation's climate objectives.
As part of this initiative, the Federal Government plans to create a national carbon registry, mandate emissions reporting from businesses, and implement phased compliance strategies in line with Nigeria’s climate commitments, which include emissions reduction goals by 2035 and achieving net-zero emissions by 2060.
Additionally, to lure investments into the sector, the framework offers tax exemptions on carbon-credit earnings for up to a decade, provides expedited capital allowances for assets with low carbon output, and allows deductions for research and development related to emissions-reduction projects.
These measures aim to eliminate longstanding structural barriers that have hindered investments in carbon markets, while simultaneously bolstering Nigeria's reputation as a climate-conscious economy capable of securing green financing and fostering sustainable growth.
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