The Federal Government has finalised a new Carbon Market Framework as the centrepiece of a bold strategy to attract up to $25 billion in climate finance by 2030, aiming to accelerate the country’s transition to a net-zero economy by 2030.
The initiative was unveiled by the Director-General of the National Council on Climate Change (NCCC), Mrs. Omotenioye Majekodunmi. She announced that the framework is ready and will be submitted to the Federal Executive Council for formal approval.
The move is designed to unlock significant international and domestic investment through green bonds, blended finance, and public-private partnerships.
This financial mobilization is intended to support the ambitious targets outlined in Nigeria’s newly submitted Nationally Determined Contribution (NDC 3.0). This latest climate action plan represents a significant shift from previous versions, adopting an absolute, economy-wide emission reduction target. It commits Nigeria to a 32.2% increase in emission reduction compared to its 2018 baseline.
Key objectives of the plan include slashing the national deforestation rate by 60%, which offers a substantial mitigation potential of 304.8 million tonnes of carbon dioxide equivalent. In the energy sector, the strategy involves installing 7 GW of new generation capacity as part of a practical “Energy Mix Plan,” split equally between renewable sources and natural gas.
“We aim to unlock at least $7-10 billion in grants and concessional finance from global partners while promoting technology transfer,” Majekodunmi stated.
To ensure transparency and build investor confidence, the government has also launched a robust Monitoring, Reporting, and Verification (MRV) system. This system is critical for tracking progress and for generating the high-integrity carbon credits that will be traded under the new framework. By creating a trustworthy market, Nigeria hopes to position itself as a major player in the global carbon economy and secure the vast funds required for its green transition.
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