President Bola Ahmed Tinubu has announced that Nigeria’s newly finalized Carbon Market Activation Policy is set to unlock up to $2.5 billion in high-integrity carbon credits and related investments by 2030, positioning Nigeria as a leader in climate-smart finance in Africa.
The announcement was made during a high-level virtual dialogue on climate and the just transition, co-hosted by UN Secretary-General António Guterres and Brazilian President Luiz Inácio Lula da Silva, ahead of COP30, which Brazil will host.
Nigeria’s Carbon Market Policy: A Game-Changer for Green Investments
According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Nigeria Carbon Market Activation Policy, finalized in March 2025, is part of the country’s broader energy reforms. The policy will drive investments in carbon credits, supporting Nigeria’s commitment to updating its Nationally Determined Contributions (NDCs) under the UN Framework Convention on Climate Change (UNFCCC) by September 2025.
The high-level dialogue included leaders from 17 countries, including climate-vulnerable nations, the African Union (AU), ASEAN, the Alliance of Small Island States, China, and the European Union (EU). The goal was to renew global political commitment to climate action ahead of the next major climate summit.
Climate Action as a Strategic Economic Driver
President Tinubu emphasized that climate action and economic growth must go hand in hand.
“The global climate emergency demands our collective, courageous, and sustained leadership. For Nigeria, the urgency of this moment is clear: we view climate action not as a cost to development, but as a strategic imperative,” he stated.
Nigeria’s Energy Transition Plan (ETP) aims to achieve net-zero emissions by 2060, focusing on five key sectors:
- Power
- Cooking
- Transportation
- Oil and gas
- Industry
The plan requires an estimated $410 billion in investments by 2060. To facilitate this, the government is implementing regulatory reforms, fiscal incentives, and institutional restructuring to balance energy access, decarbonization, and economic competitiveness.
Nigeria’s Role in Africa’s Green Energy Revolution
Nigeria is also a key player in the Mission 300 initiative, a partnership with the World Bank and the African Development Bank (AfDB), aiming to electrify 300 million Africans by 2030.
Additionally, President Tinubu revealed plans to launch a Global Climate Change Investment Fund, designed to:
- Blend public and private capital
- De-risk green infrastructure projects
- Finance scalable clean energy solutions
The fund will support critical areas such as:
✅ Green industrial hubs
✅ E-mobility infrastructure
✅ Renewable energy mini-grids for underserved communities
✅ Regenerative agriculture
This initiative aligns with Nigeria’s National Energy Compact, which sets clear targets for expanding clean energy access and clean cooking adoption.
International Support and Next Steps
President Tinubu expressed gratitude to international partners, including the United Nations and Sustainable Energy for All (SEforALL), for their advisory and technical support in developing Nigeria’s climate and energy policies.
Conclusion: Nigeria’s Green Economy on the Rise
With the Carbon Market Activation Policy, Nigeria is positioning itself as a hub for climate finance in Africa, attracting billions in green investments while advancing its Energy Transition Plan. As the country moves toward net-zero emissions, these initiatives promise economic growth, job creation, and sustainable development for future generations.
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