Nigeria’s president, Bola Ahmed Tinubu, announced that the recently completed Carbon Market Activation Policy is projected to generate $2.5 billion in high-integrity carbon credits and related investments by 2030.
Speaking on April 23, 2025, during a virtual climate dialogue co-hosted by UN Secretary-General António Guterres and Brazilian President Luiz Inácio Lula da Silva ahead of COP30 in Brazil, Tinubu highlighted the policy’s potential to establish Nigeria as a leading hub for climate-smart finance in Africa. The announcement was shared via a statement from his Special Adviser on Information and Strategy, Bayo Onanuga.
The policy, finalized in March 2025, is part of Nigeria’s broader energy reform strategy and aligns with an upcoming revision of its Nationally Determined Contributions (NDCs), set for completion by September 2025 under the UN Framework Convention on Climate Change (UNFCCC).
The dialogue included leaders from 17 countries, spanning climate-vulnerable nations, regional blocs including the African Union, ASEAN, and the Alliance of Small Island States, as well as major players like China and the European Union, aiming to inject fresh political will into the global climate agenda ahead of the next major climate summit.
Tinubu emphasized that Nigeria believes 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,” President Tinubu noted.
The president outlined Nigeria’s Energy Transition Plan (ETP) as a practical roadmap towards achieving net-zero emissions by 2060, targeting five key sectors: power, cooking, transportation, oil and gas, and industry. Stating that an estimated $410 billion in investment is required by the target date.
To make the ETP feasible, Tinubu said the government is aligning regulatory frameworks, providing fiscal incentives, and institutional restructuring to enable simultaneous progress in energy access, decarbonization, and economic competitiveness.
He also highlighted Nigeria’s role as an anchor country in the Mission 300 initiative, a partnership with the World Bank and African Development Bank aimed at electrifying 300 million Africans by 2030.
Tinubu revealed plans to launch a Global Climate Change Investment Fund, a mechanism to blend public and private capital, de-risk green infrastructure, and finance scalable clean energy solutions.
The fund is expected to support key sectors, including green industrial hubs, e-mobility infrastructure, renewable energy mini-grids for underserved communities, and regenerative agriculture.
This aligns with Nigeria’s National Energy Compact, which sets clear targets to expand clean energy access and improve clean cooking adoption. Tinubu said.
WHAT YOU SHOULD KNOW
Nigeria’s Carbon Market Activation Policy, as announced by President Tinubu, is a bold step toward integrating climate action with economic development, with the potential to unlock $2.5 billion in carbon credits and investments by 2030.
The policy, embedded within the Energy Transition Plan and supported by initiatives like the Global Climate Change Investment Fund and Mission 300, positions Nigeria as a potential leader in African climate finance.
However, its success depends on overcoming significant domestic challenges, including institutional capacity, governance, and economic trade-offs, as well as navigating a global climate landscape marked by inequities and competing priorities.
As Nigeria prepares its updated NDCs for COP30, the policy signals a commitment to sustainable growth, but its impact will hinge on sustained political will, robust implementation, and international support.
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