Climate advocate and founder of the FactCheck Initiative and Kaci Help, Temitope Adeoye, has urged the Nigerian government to embrace the emerging carbon credit market, describing it as the “crude oil of the green economy.”
Adeoye, who made the call through an article published on the FCI website and Medium, recounted a conversation with a farmer in Abuja who was unaware of the economic and environmental potential of carbon credits — a reflection, he said, of the general lack of awareness across the country.
Carbon credits, essentially permits allowing the emission of one metric tonne of carbon dioxide or its equivalent, are earned by individuals or organisations that reduce emissions, such as through tree planting, renewable energy adoption, or sustainable farming, and can be sold to others needing to offset their carbon footprint.
To demystify the concept, Adeoye compared it to water rationing: “If you use less than your share, you can sell the excess to someone who used more. The same logic applies to carbon.”
Nigeria, he noted, is among Africa’s top greenhouse gas emitters, yet remains rich in natural and human resources that position it advantageously for carbon credit generation. From its vast forests and agricultural landscapes to its growing renewable energy sector, the country is well placed to become a regional hub for carbon markets.
Referencing the Nigerian Climate Change Act of 2021, which commits the nation to achieving net-zero emissions by 2060, Adeoye argued that the carbon market could be pivotal in realising this target. He also pointed to current government-backed initiatives, including the adoption of Compressed Natural Gas (CNG) as a cleaner fuel alternative, as steps in the right direction.
Adeoye detailed the process for earning carbon credits: it begins with a baseline assessment to determine projected emissions in the absence of any intervention, followed by implementation of the emission-reducing project, and then independent verification to authenticate results and issue credits.
He cited a case study from a Nigerian state where a farming cooperative planted 10,000 trees, generating over 2,000 carbon credits later sold to a European firm. He added that local organisations such as the Carbon Credit Network (CCN) are already working with farmers to generate credits through reforestation efforts.
Major corporate players, including Dangote Group, NNPC, Oando, and Seplat, have also been identified as both contributors to and potential beneficiaries of the carbon market. These firms can generate credits through sustainable practices or purchase them to offset their operational emissions.
However, Adeoye warned of challenges including poor public awareness, high verification costs, and the absence of clear regulatory frameworks. To overcome these hurdles, he proposed a range of solutions: state-backed education campaigns, subsidised verification processes, incentivised participation schemes, and the creation of a National Carbon Registry — similar to systems already established in Kenya and Ghana.
Estimating the market potential, Adeoye suggested that if just ten major Nigerian companies each generated or bought one million carbon credits annually at \$10 per credit, the country could unlock a \$100 million green economy market every year, with parallel benefits in emission reduction and rural development.
“Nigeria should not only be a victim of climate change — we must become active participants in the green economy,” he said.
He concluded with an appeal to policymakers, business leaders, and community stakeholders to engage actively with carbon market opportunities.
“Whether you’re a farmer in Nasarawa, a startup founder in Lagos, or a policymaker in Abuja, the carbon credit conversation belongs to you,” Adeoye added.
