Stakeholders have resolved to pursue a unified commitment to realising a policy to help the country maximise its carbon market potential.
The experts who agreed to ensure that a policy in that regard is legalised, comprised representatives from government ministries and agencies, the Central Bank of Nigeria (CBN), academia, and the private sector.
They made the resolution at a workshop in Abuja organised by the Environment for Development (EfD) Nigeria in collaboration with the National Council on Climate Change (NCCC).
According to them, Nigeria’s carbon market faces several challenges, including regulatory gaps, limited public and stakeholders’ awareness, and limited capacity and infrastructure. Hence, a need for a comprehensive framework to guide market development. They agreed that a comprehensive policy framework would be fundamental in overcoming these hurdles.
The workshop is part of the process of engaging Nigerian stakeholders in a broader, multi-country EfD research initiative. Titled: “Exploring the potential and challenges of the carbon market in developing countries’’; it is a 30-month project that aims to understand the opportunities and threats of voluntary carbon markets in the global south.
The Director/Chief Executive Officer of Nigeria’s National Council on Climate Change (NCCC), Dr Nkiruka Maduekwe, highlighted that relevant government ministries are reviewing Nigeria’s draft carbon market policy, adding that the agency will not relent until the document becomes a legal instrument.
“I consider the research by EfD Nigeria important because it gives the government the baseline to understand the status of Nigeria in the voluntary carbon market,” she said.
EfD Nigeria researchers – Nnaemeka Chukwuone and Chizoba Oranu, said the market offers a platform for individuals, organisations, and entities to voluntarily offset their GreenHouse Gas (GHG) emissions by investing in emission reduction or sequestration projects.
The session highlighted the immense potential of Nigeria’s carbon market, which experts believe could generate over $2 billion by 2030 if a regulatory framework is enacted to protect investors.
Regulatory guidance on the Nigerian carbon market states that participation in the voluntary carbon market will be based on government policies and development priorities. However, the country has yet to legalise a comprehensive carbon policy that will promote participation and build investors’ confidence.
Director of EfD Nigeria, Nnaemeka Chukwuone, said that a well-structured carbon market framework for Nigeria would attract vital investments and unlock immense financial opportunities.
He assured that EfD Nigeria and NCCC would continue to work closely with relevant stakeholders to ensure the rapid advancement of Nigeria’s carbon market policies and create a sustainable pathway for climate action.
“Although this research project is international in scope, it will have direct implications for Nigeria’s policy development and carbon market strategies,” Chukwuone said.
