Nigeria Targets $3 Billion in Carbon Financing by 2030

Nigeria is targeting to generate $3 billion annually from carbon financing by 2030, leveraging its vast agricultural land, renewable energy potential, and young population. President Bola Tinubu approved the reinstatement of the National Council on Climate Change (NCCC) and the establishment of the Nigeria Carbon Market Framework (NCMF) to facilitate participation in the global carbon economy.

The NCMF aims to generate 124.7 million tons of carbon dioxide equivalent emissions reductions by 2030, unlocking a market value of $2.5 billion to $3 billion. The framework will engage in both voluntary and compliance carbon markets, with Nigeria currently having 57 registered voluntary carbon projects.

The government has already issued 5.8 million carbon credits. However, experts express concerns regarding regulatory gaps and the need for a comprehensive framework to guide market development, emphasizing the importance of establishing a robust system to ensure compliance and market stability.