Nigeria launches National Carbon Market Framework targeting $2.5-3 billion annual revenue

President Bola Tinubu launched Nigeria's National Carbon Market Framework at the 2026 Abu Dhabi Sustainability Week, anchored on a National Carbon Market Activation Policy and National Carbon Registry. The move signals how emerging economies are formalizing carbon as an asset class, offering Indian carbon-market participants a comparator as India operationalizes its own Carbon Credit Trading Scheme.

President Bola Tinubu officially launched Nigeria's National Carbon Market Framework at the 2026 Abu Dhabi Sustainability Week, marking Africa's largest economy's formal entry into the global carbon market. The framework is anchored on the National Carbon Market Activation Policy and the recently established National Carbon Registry to improve reporting, issuance, and verification of carbon credits. Nigeria expects the initiative to generate between $2.5 billion and $3 billion in annual revenue over the next decade, monetizing emission reductions across energy, agriculture, and forestry.

Strategic industrial sectors including renewable energy, clean cooking, and reforestation are the primary targets for project development under the new rules. The National Council on Climate Change has already received over 3,000 project applications, demonstrating strong private-developer interest. Foreign direct investors gain clearer pathways into Nigeria's green infrastructure, supported by a new Comprehensive Economic Partnership Agreement with the United Arab Emirates covering renewable energy and climate-smart infrastructure. The World Bank is implementing a $750 million program to expand clean electricity access to millions of Nigerians.

Project developers and investors should monitor the operationalization of the National Carbon Registry, which reduces double-counting risk and enhances investor confidence in environmental-asset quality. Affected entities can use the Climate and Green Industrialisation Investment Playbook to guide private capital toward sustainable manufacturing, as Nigeria aims to unlock up to $30 billion annually in climate finance. Participants should track the National Climate Change Fund and 2023 Electricity Act reforms, which prioritize decentralized energy access supporting the country's 2060 net-zero goals.

Key figure — Projected annual revenue: $2.5 billion to $3 billion over the next decade