Nigeria Urged to Establish National Carbon Market Office

A letter to President Bola Ahmed Tinubu highlights the urgent need for Nigeria to establish a national office for carbon markets to leverage climate financing opportunities. As Africa's largest economy, Nigeria is positioned to lead in carbon trading, yet it risks being sidelined without a structured approach.

The letter suggests pursuing bilateral carbon market agreements with countries like Singapore and Switzerland, in line with Article 6 of the Paris Agreement, which allows for international cooperation in trading verified emissions reductions. Nigeria possesses significant natural assets, including reforestation potential and renewable energy opportunities, which could facilitate a thriving carbon market.

However, the current lack of a centralized institution to coordinate these efforts creates uncertainty for investors. Establishing a national carbon market office is deemed essential for managing approvals, engaging investors, and ensuring accurate national accounting systems.

The letter also notes Ghana's proactive steps in signing agreements to attract climate finance, urging Nigeria to follow suit to enhance its competitiveness in the green economy.