Climate change significantly threatens Nigeria’s economy, environment, and society. However, the transition to a low-carbon economy also presents opportunities. A burgeoning carbon market offers Nigeria a platform to reduce greenhouse gas emissions, create green jobs, and attract sustainable investments. With its vast natural resources, diverse ecosystems, and growing population, Nigeria has immense potential to become a major player in the global carbon market.

Before delving into the potential of Nigeria’s carbon market, it’s essential to understand the country’s greenhouse gas emissions landscape. The energy, agriculture, and land-use change sectors primarily drive Nigeria’s emissions. While the country’s per capita emissions are relatively low, the rapid pace of economic growth and population increase is leading to a rise in emissions.

Nigeria possesses abundant natural resources and a diverse ecosystem that can support various carbon credit projects. The agricultural sector, for instance, offers significant opportunities for carbon sequestration through practices such as agroforestry, regenerative agriculture, and soil carbon management. Agroforestry, which integrates trees and shrubs into agricultural systems, enhances soil carbon storage, improves biodiversity, and provides additional income for farmers.

The country’s vast forest resources provide another avenue for carbon credit generation through reforestation, afforestation, and REDD+ (Reducing Emissions from Deforestation and Forest Degradation) initiatives. These projects mitigate climate change, conserve biodiversity, and support sustainable livelihoods.

Nigeria’s abundant renewable energy potential, particularly in solar and wind power, offers further opportunities for carbon credit generation. Developing clean energy projects reduces reliance on fossil fuels, lowers greenhouse gas emissions, and generates carbon credits.

Additionally, the waste management sector can contribute to carbon credit generation through waste-to-energy projects, landfill gas capture, and recycling initiatives. These projects address waste management challenges while mitigating climate change. While Nigeria’s carbon market potential is immense, challenges persist. Developing a robust regulatory framework, building stakeholder capacity, and investing in data and monitoring systems are crucial. However, these challenges also present opportunities for innovation and development.

For instance, a clear regulatory framework attracts investors and creates a conducive environment for carbon credit projects. Capacity building empowers communities and entrepreneurs to participate in the carbon market. Investing in data and monitoring systems enhances the credibility of carbon credits.
Indigenous knowledge and practices, such as traditional agroforestry systems and soil conservation techniques, offer valuable insights for developing effective carbon credit projects. Integrating these practices with modern approaches can enhance project outcomes and ensure community ownership. To ensure sustainable development and community benefits, carbon credit projects must prioritise social and environmental safeguards. This includes respecting land rights, protecting biodiversity, and promoting gender equality.

A thriving carbon market can unlock significant economic benefits for Nigeria. Revenue from carbon credit sales can be invested in climate mitigation and adaptation projects, creating jobs and fostering sustainable development.

The private sector is a key driver. Companies can generate carbon credits through various projects and purchase credits to offset their emissions. Attracting private investment requires a conducive business environment, clear regulations, and incentives.

Recommendations include; developing a comprehensive regulatory framework aligned with international standards; invest in capacity building for communities, and businesses; promoting public-private partnerships for project development and financing; supporting research and development on carbon sequestration and monitoring technologies; integrate indigenous knowledge and practices into carbon credit projects; and prioritise social and environmental safeguards in project design and implementation.

Nigeria has immense potential to become a leader in the global carbon market. By leveraging its natural resources, embracing sustainable practices, and creating a conducive environment for carbon credit projects, Nigeria can contribute to global climate action while stimulating economic growth and improving livelihoods.