By Abbas Nazil
President Bola Ahmed Tinubu has announced that Nigeria’s newly activated carbon market is expected to generate between $2.5 billion and $3 billion annually over the next decade.
He made the disclosure while addressing world leaders and investors at the 2026 Abu Dhabi Sustainability Week, which carried the theme “The Nexus of Next: All Systems Go.”
Tinubu said the move forms part of Nigeria’s broader effort to mobilise climate finance and support the country’s ongoing energy transition.
According to the President, the government has implemented regulatory measures to strengthen climate governance and attract investment into low-carbon projects across the country.
“Nigeria feels at the heart of development opportunity,” Tinubu said, emphasizing that the nation has also launched a climate and green industrialisation investment initiative intended to unlock between $20 billion and $30 billion annually in climate finance.
He explained that the carbon market strategy is based on the National Carbon Market Activation Policy and the National Carbon Registry, which aim to improve emissions reporting, verification, and transparency.
The President stressed that these measures are designed to make Nigerian carbon credits credible and attractive to global buyers, encouraging participation in emissions-reduction initiatives.
Tinubu noted that the National Carbon Market Framework was approved in October 2025, establishing clear rules for carbon credit registration, issuance, and verification.
He added that the Climate Change Fund was operationalized in November, alongside the restoration of the National Council on Climate Change to the federal budget, reinforcing Nigeria’s commitment to climate action.
The carbon market is expected to incentivize projects in forestry, renewable energy, clean cooking, and sustainable agriculture while creating new revenue streams for both communities and businesses.
On energy reform, Tinubu highlighted the 2023 Electricity Act, which allows decentralized electricity generation and distribution, providing inclusive energy access to rural communities, schools, health facilities, markets, and other underserved areas.
He stressed that Nigeria recognizes the urgent need to deploy modern technologies to improve green efficiency, modernize infrastructure, and accelerate sustainable energy delivery.
Tinubu also outlined financing initiatives linked to the climate agenda, including a climate investment platform targeting $500 million for climate-resilient infrastructure, a national climate platform aimed at mobilizing $2 billion, and a $50 billion sub-regional green bond, which he reported was oversubscribed by 97.7 percent.
The President highlighted the role of multilateral partners, noting that the World Bank is implementing a $750 million program to expand clean electricity access for over 17.5 million Nigerians.
He explained that Nigeria’s energy transition plan integrates climate mitigation, industrial growth, and social development into a single coherent framework, aiming for net-zero emissions by 2060 while ensuring universal energy access.
Tinubu called on developed nations to strengthen partnerships through technology transfer, knowledge exchange, and innovation, adding that adopting artificial intelligence for efficiency optimization is an urgent priority.
He concluded by noting that Nigeria submitted updated climate commitments to the United Nations in September 2025, reinforcing its commitment to using market-based mechanisms, including carbon trading, to meet emissions targets while promoting economic growth.
