President Bola Ahmed Tinubu has approved the full implementation of Nigeria’s carbon market framework, a landmark climate policy projected to generate at least $3 billion in annual revenue by 2030.
The development was announced on Thursday by the Special Assistant to the President on Social Media via his verified X handle, @DOlusegun, who described the approval as a strategic step toward positioning Nigeria as a major player in the global carbon trading ecosystem.
The framework is designed to drive large-scale trading in emission allowances across key sectors of the economy, opening up new revenue streams while strengthening the country’s commitment to climate action and environmental sustainability.
Under the policy, the Federal Government will establish a national carbon registry, mandate emissions reporting by companies, and introduce phased compliance requirements aligned with Nigeria’s international climate commitments. These include interim emissions-reduction targets by 2035 and a long-term goal of achieving net-zero emissions by 2060.
To attract investors and accelerate market participation, the framework offers a range of incentives, including up to 10 years of tax exemptions on carbon-credit revenues, accelerated capital allowances for investments in low-carbon technologies, and research and development deductions tied to emissions-reduction projects.
The measures aim to remove longstanding structural barriers that have limited carbon market investments, while enhancing Nigeria’s profile as a climate-responsive economy capable of attracting green finance and fostering sustainable growth.
The approval reflects the Tinubu administration’s broader agenda to diversify national revenue, balance economic development with environmental responsibility, and secure Nigeria a competitive position in the rapidly evolving global carbon economy.