Nigeria Set Sights on $2 Billion Carbon Credit Market by 2030, To Boost Investment Through Policy Reforms

Nigeria is taking strategic steps to become a key player in the global carbon credit market, with forecasts suggesting the country could earn over $2 billion annually by 2030. Achieving this vision will depend heavily on developing a strong regulatory framework and securing significant investments in climate-resilient projects.

The federal government has emphasized the economic potential of carbon trading, estimating that Nigeria could produce up to 30 million carbon credits each year by the end of the decade. A presidential aide noted that this emerging market could support more than 3 million jobs in carbon credit marketing, combining economic development with environmental protection.

Agriculture is leading the charge in this initiative. Uka Eje, CEO of agritech company ThriveAgric, is launching a pilot project that incorporates fruit tree planting alongside conventional farming. “We aim to begin with the new farming season starting in March,” said Samirah Bello, the company’s global head of partnership. The pilot will start with 30,000 farmers and eventually scale to 200,000, enabling them to earn carbon credits through eco-friendly agricultural practices.

In the Niger Delta, local projects are leveraging the region’s dense vegetation to generate carbon credits. Capt. Warredi Enisuoh of Tantita Security Services estimates the area could generate as much as $320 million annually. “Our objective is to help these communities shift away from dependence on oil and gas by engaging them in carbon credit programs and carbon capture initiatives,” he said.

Nonetheless, industry leaders stress the need for the swift implementation of a national Carbon Market Policy Framework. “Without a clear policy, Nigeria’s vast carbon market potential remains untapped, and we risk missing out on crucial investments for large-scale initiatives like mangrove restoration,” said Oden Ewa, Chairman of the Cross River State Green Economic Commission.

The National Council on Climate Change (NCCC) is responding to these concerns. Director-General Dr. Nkiruka Maduekwe acknowledged existing hurdles but reaffirmed the Council’s commitment to activating Article 6 of the Paris Agreement. This will help create a platform for both public and private actors to engage in carbon trading.

Legal and policy experts are also advocating for robust legislation and incentives to boost market development. Oludare Senbore of the Aluko and Oyebode law firm proposed the creation of a dedicated carbon trading exchange and tax incentives for businesses adopting cleaner energy. “We need a formal structure—much like the Nigerian Exchange—to facilitate carbon trading,” Senbore noted.

As Nigeria charts its path into the global carbon economy, success will hinge on aligning policy reform, investment mobilization, and sustainable practices to meet both climate and economic goals.