Nigeria sets up carbon market framework, targets $3bn annually
President Bola Tinubu has approved the adoption of a National Carbon Market Framework, the operationalisation of the Climate Change Fund, and the restoration of the National Council on Climate Change to the budget line.
This is coming ahead of the 2025 United Nations Climate Change Conference (COP 30) scheduled to be held in Brazil, starting from Monday, November 10 to Friday, November 21, 2025.
The Senior Special Assistant to the President on Media and Communications
(Office of the Vice President), Stanley Nkwocha announced this in a statement issued on Friday.
“The goal is to establish and manage Nigeria’s participation in carbon markets, enabling the nation to unlock between $2.5 billion and $3 billion annually in carbon finance over the next decade to help meet climate goals”, the statement read.
The approvals, according to Nkwocha, followed a presentation by the Director General of NCCC, Mrs Omotenioye Majekodunmi, at the second meeting of the Council held on Thursday evening at the Presidential Villa, Abuja.
Tinubu, who was represented by Vice President Kashim Shettima, said the approvals were part of measures by his administration to properly position Nigeria to leverage opportunities in the global carbon market and be more active in climate change ecosystem.
Tinubu also set the agenda for Nigeria ahead of the forthcoming 30th United Nations Climate Change Conference (COP 30) scheduled for Belem, Brazil, saying the focus is to harness all of the opportunities for financing climate-resilient projects and related interventions, particularly from the global carbon market.
The President said his administration recognises the fact that addressing climate change is not just an environmental imperative but an opportunity to unlock new investments, jobs, and innovations across the nation’s energy, agriculture, and industrial sectors.
He said, “Nigeria stands ready to take its rightful place as a global leader in climate action, ensuring that our voice and our reality are heard and respected in international negotiations.
“We have demonstrated this commitment through our active participation in the UNFCCC process, our progress towards implementing our nationally determined contributions, and our efforts to mobilize climate finance for adaptation and mitigation across all levels of government.”
Tinubu assured that as chairman of the Council, Climate action will continue to be prioritised in his administration’s development agenda.
“We will continue to champion policies that protect our people, strengthen our economy, and position Nigeria as a destination for green investment and innovation”, he said.
Earlier, the Director-General of the National Council on Climate Change and Secretary to the Council, Mrs. Omotenioye Majekodunmi, informed the council, chaired by Shettima, who represented Tinubu, that the meeting was timely.
She said the deliberations and decisions of the council would shape how Nigeria is perceived globally and determine how effectively the country can mobilize support to achieve its climate goals.
The Council Secretariat expressed its commitment to providing the technical leadership and coordination needed to translate Nigeria’s climate goals into measurable results.
Presenting the Council’s progress report, Majekodunmi disclosed that Nigeria is now eligible to access new rounds of climate finance from multilateral funds.
Highlighting the Secretariat’s key requests, she said the Council sought the adoption of the National Carbon Market Framework to enable Nigeria unlock between $2.5 billion and $3 billion annually in carbon finance over the next decade.
The Council also requested the operationalization of the Climate Change Fund to ensure immediate readiness for fund mobilization and utilization.
The final request was for the Council to restore the NCCC budget line within the annual FAAC allocation to guarantee the financial stability of the Climate Change Fund.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, backed the Council Secretariat’s recommendations, noting that Nigeria must secure a strong position within the carbon framework.
He assured the Council of the Finance ministry’s support, including coordination with the ministry’s economic department, to host a quarterly Climate Finance Tracking Dashboard.
NCMF is a comprehensive plan that establishes the rules, institutions, and procedures for generating, validating, and trading carbon credits within a country and with international partners.
COP30 is a major global summit where world leaders, scientists, and non-governmental organisations will negotiate actions to combat climate change, aiming to limit global warming and fulfill the goals of the Paris Agreement.
The conference will be particularly significant as it marks anniversaries of the Kyoto Protocol and the Paris Agreement and will take place in the Amazon region.
