By olusegun Michael Ogundele
Recently, the Director of the University of Nigeria Resource and Environmental Policy Research Centre (UNN-REPRC), Professor Nnaemeka Chukwuonere projected that Nigeria’s carbon market could reach USD2 billion by 2030.
Chukwuonere, who spoke at a one-day workshop tagged “Exploring the Potentials and Voluntary Carbon Market”, in Abuja, noted that a huge of revenue was attached to carbon market, adding that efficient implementation of carbon market would improve job opportunities in the country.
He said: “Under the carbon market activation programme, it is estimated that Nigeria will have over two billion dollars by 2030. I believe that if things are done well, it will go beyond that because it will generate alot of revenue. It will also create job opportunities.
“For instance, if we have offsets in the forestry, agriculture or even energy sector, the country will have a lot of money coming from carbon markets. It will also help to sustain the environment in terms of biodiversity conservation and ecosystem.”
However, this projection has raised significant concerns regarding the viability and potential consequences of such a market in Nigeria, particularly within the context of the broader global carbon market crisis.
Carbon markets, which consist of both compliance and voluntary schemes, have faced widespread criticism for their inability to address the root causes of climate change effectively.
Initially introduced through cap-and-trade regulations in the United States in 1977, these markets have been plagued by issues such as carbon leakage, fluctuating prices, and the financialization of environmental pollution.
The failure of the European Union’s Emission Trading System (ETS) between 2012 and 2023 further exemplifies these challenges, casting doubt on the carbon market’s ability to reduce emissions sustainably.
The global carbon market was created to hold carbon emitters accountable for their contributions to climate change. However, the system has largely benefited polluters rather than effectively curbing emissions.
A key concern is the disparity between the compliance carbon market, primarily used by developed countries, and the voluntary carbon market, in which developing nations like Nigeria are increasingly involved.
In the voluntary market, companies are allowed to purchase carbon credits from projects in developing countries to offset their emissions, raising concerns about the legitimacy of these credits and the potential exploitation of local communities and indigenous lands for the benefit of foreign polluters.
Experts, including climate scientists and environmental advocates, have expressed concerns that carbon trading schemes may do more harm than good.
These critics argue that carbon markets often lead to the displacement of vulnerable communities, particularly indigenous peoples, and the degradation of local ecosystems.
The case of Liberia, where large tracts of land are being allocated for carbon offset projects, and similar situations in Kenya, highlight the negative social and environmental consequences of carbon trading.
In Nigeria, which has already experienced significant deforestation, there are fears that carbon credit schemes could further harm the environment and exacerbate social displacement. Moreover, the projected USD 2 billion from Nigeria’s carbon market by 2030 is a small fraction of the country’s mounting external debt, which stood at USD 42.12 billion in 2024.
This raises questions about the effectiveness of carbon markets in addressing Nigeria’s pressing climate and financial challenges.
Critics argue that such schemes, which primarily benefit financial brokers and polluting companies, offer little in terms of meaningful climate action.
Instead, alternative approaches, such as Nigeria’s Green Bond initiative, which aims to raise USD 250 million for climate action, may provide more sustainable and equitable solutions for the country’s climate needs.
By focusing on national climate policies and leveraging scientific research, Nigeria can develop more effective strategies to combat climate change without relying on the problematic carbon market.
While the carbon market is often promoted as a solution to climate change, its efficacy and fairness remain highly debated.
Nigeria’s policymakers and scientists must critically evaluate the potential risks and benefits of carbon trading schemes, prioritizing strategies that safeguard the environment and protect the livelihoods of local communities.
