The approval positions Nigeria as a major player in global carbon trading, opening opportunities for large-scale emission allowance transactions across key sectors of the economy.

Under the new framework, the Federal Government will establish a national carbon registry and introduce mandatory emissions reporting for companies operating in the country. The policy also provides for phased compliance mechanisms aligned with Nigeria’s climate commitments, including emissions reduction targets by 2035 and the goal of achieving net-zero emissions by 2060.

To attract investment and stimulate market participation, the framework offers a range of fiscal incentives. These include tax exemptions on carbon credit revenues for up to 10 years, accelerated capital allowances for low-carbon assets, and research and development deductions linked to emissions-reduction projects.

The measures are designed to remove structural and regulatory risks that have previously limited investment in Nigeria’s carbon market, while creating a transparent and credible system for carbon trading.

The approval was disclosed by the Special Assistant to the President on Social Media, Dada Olusegun, in a post on X on Thursday.

“President Bola Tinubu has approved the implementation and operationalization of Nigeria’s carbon market framework, a landmark policy expected to generate at least $3 billion annually by 2030.

“The framework positions Nigeria at the forefront of carbon trading, opening the door to large-scale emission allowance transactions across multiple sectors,” Olusegun said.

“These measures aim to eliminate structural risks that have previously constrained investment in carbon markets.”