By Abbas Nazil
The Carbon Market Association of Nigeria has called on the federal government to de-risk carbon market projects as a critical step toward attracting large-scale investment into the sector.
The association said this approach is necessary to unlock private capital and position Nigeria as a competitive player in global carbon markets.
Carbon market projects are initiatives aimed at reducing greenhouse gas emissions and generating carbon credits that can be traded to entities seeking to offset their emissions.
The call follows President Bola Tinubu’s approval in October 2025 of a national carbon market framework designed to attract up to three billion dollars annually in carbon finance over the next decade.
The framework was formally launched earlier this week at the Abu Dhabi Sustainability Week in the United Arab Emirates.
In a statement issued last Thursday, Horsfall Tony, president of the Carbon Market Association of Nigeria, said the launch of the framework must be followed by concrete steps that make projects bankable and attractive to investors.
Tony said Nigeria needs to move beyond policy announcements by actively supporting and showcasing a pipeline of high-quality carbon projects that are already at advanced stages of development.
He explained that such projects should serve as early national flagships capable of demonstrating credibility and viability to international investors.
According to the association, carbon projects must be commercially viable, aligned with national regulations and supported by robust measurement, reporting and verification systems.
Tony also stressed that trust and active participation from host communities are essential to the long-term success of carbon market initiatives.
He said de-risking early projects would help catalyse Nigeria’s participation in international carbon markets and significantly boost investor confidence.
The association noted that reducing risks around project development would attract private capital at scale and accelerate market growth.
Tony further called for stronger coordination among ministries, departments and agencies involved in climate and environmental governance.
He said sustained engagement with state and local governments is necessary to ensure smooth project implementation across the country.
The association highlighted the importance of establishing a functional carbon market office as provided for in the national framework.
It said such an office would be critical for issuing timely project approvals, operating a national carbon registry and building capacity for local developers.
Tony added that capacity building should also extend to host communities to ensure inclusiveness and shared benefits.
He said the Carbon Market Association of Nigeria is ready to work closely with the National Council on Climate Change and other relevant institutions.
This collaboration, he said, would support effective implementation of the framework and align carbon market growth with Nigeria’s broader climate and development objectives.
The association expressed optimism that with the right policy actions, Nigeria’s carbon market could become a major source of climate finance and sustainable development.
