Nigeria has taken a decisive step toward shaping its participation in global carbon markets with the release of its National Carbon Market Framework (NCMF) and the accompanying Manual of Procedures (MoP). The newly approved documents outline a comprehensive structure for both voluntary market activity and cooperation under Article 6 of the Paris Agreement, marking the country’s most detailed policy guidance to date.
Two men checking the health of a Nigerian forest. AI generated picture.
A central feature of the framework is an 8% fee applied to corresponding adjustments (CAs)—the mechanism required for transferring UN-backed carbon credits internationally. CA-related fees have become a focal point for developers worldwide, as cost structures vary significantly across host countries and influence overall project viability. Nigeria has also introduced a separate $1,000 charge for securing a Letter of Authorisation (LoA), an important step toward obtaining a CA, though not a guarantee of its issuance.
The NCMF and MoP set out obligations for project developers, government institutions and private-sector actors, defining roles across project approval, standard-setting and long-term market oversight. The documents were approved by the National Council on Climate Change, which includes input from President Bola Ahmed Tinubu.
Read more: Countdown to CSRD: Your 12-month plan for compliance and competitiveness
To guide implementation, Nigeria has introduced a Five-Year Roadmap for Carbon Market Participation. The plan details near- and mid-term priorities aimed at strengthening national readiness and expanding engagement in both Article 6 and voluntary markets. Objectives for 2025 include establishing a national carbon registry, identifying eligible project categories through a ‘whitelist’, piloting Article 6 activities, initiating bilateral negotiations and developing trading rules for Paris-aligned credits. Further work in 2026 will focus on finalising methodologies and systems for measurement, reporting and verification.
In the medium to long term, Nigeria intends to develop an emissions trading system (ETS) and a carbon tax. These instruments are expected to align with sectors central to the country’s emissions profile, including power generation, oil and gas, transport, waste, industry and land-use activities. A pilot phase for the carbon tax is slated for 2029.
The Carbon Market Office (CMO), operating within the NCCC secretariat, will oversee key elements of the system, including the creation of a national registry and the management of proceeds from Article 6.4 credit sales to support mitigation and adaptation initiatives. Developers expect the first LoA issuance to be a critical milestone, though timelines remain uncertain.
Read more: Korean province partners with Mongolia in First Article 6 deal
While Nigeria lays the foundation for a more structured and transparent carbon market—supported by clear rules, corresponding adjustments and a roadmap toward future compliance systems—the stage is set for high-quality projects to deliver real, measurable impact. This shift aligns closely with the work we champion at Green Earth, where nature restoration and community wellbeing go hand in hand. Our newly launched Green Earth Sauki Cookstove Project in Nigeria embodies this commitment: 326,000 efficient, locally built stoves that reduce emissions, ease pressure on forests and improve daily life for families across the country. In a market rapidly moving toward credibility, verifiability and social value, organisations have a unique opportunity to align with solutions that deliver on all fronts. Now is the moment to take the next step.
