The Director General of the National Council on Climate Change, Omotenioye Majekodunmi has said Nigeria will soon have a fully functional carbon market framework backed by law.
She also said that the country could generate up to $500 million annually as additional income and produce over 30 million metric tonnes of carbon credits annually by the year 2030.
Many carbon credits are designed to directly improve local livelihoods in rural communities.
Majekodunmi, represented by the Council's Director of Energy, Transportation and Infrastructure, Michael Invenso, spoke on Thursday in Abuja at the National Dissemination of Carbon Offset Study Report and Multi-Stakeholder Dialogue, organised by Search for Common Ground.
She said the framework, which provides the legal and institutional backing for carbon trading in Nigeria, is designed to position the country as a key player in the global carbon market ahead of the forthcoming climate talks in Brazil.
"The federal government did recognise the potential by finalising the carbon market activation plan by COP 30, meaning that by the time we go to Brazil in a couple of months, Nigeria will have a fully functional carbon market framework that is backed by law.
"The Attorney General of the Federation has issued a legal opinion affirming that carbon market activities are valid under the Constitution of the Federal Republic of Nigeria. This gives investors the confidence that transactions conducted in Nigeria will be legitimate and enforceable.
"That is not just a legal balance. It's actually a market signal that tells investors that Nigeria is open for business and that we as Nigerians and our communities are making ourselves available... to attract the required carbon financing to help us with our development projects in our communities, Majekodunmi said.
The DG explained that the framework sets clear rules for the generation, certification, and trading of carbon credits, ensuring transparency, accountability, and alignment with international standards.
According to her, Nigeria has the potential to produce more than 30 million metric tonnes of carbon credits annually by 2030, which could generate up to $500 million yearly in additional income for the country.
She noted that proceeds from carbon credits would be channelled into local development projects, including schools, healthcare, clean water supply, and support for climate-smart agriculture.
"Nigeria has the potential to produce over 30 million metric tonnes of carbon credits annually by the year 2030. This could generate up to $500 million annually as additional income for this country. Many carbon credits are designed to directly improve local livelihoods in rural communities.
"Carbon offsetting is not just an environmental measure; it is an economic tool for community empowerment. With this framework, Nigeria is open for business, and our local communities will benefit directly from the investments that flow into carbon projects," he added.
Majekodunmi stressed that a strong national registry, robust monitoring, reporting and verification system, and clear project guidelines had been incorporated into the framework to prevent exploitation and build credibility in the eyes of international buyers.
She urged states, local governments, and community organisations to take advantage of the opportunities by developing bankable projects in reforestation, renewable energy, clean cooking solutions, and waste-to-energy initiatives.
The PUNCH reports that Nigeria has long been one of Africa's largest oil producers, but decades of dependence on fossil fuels have left the country highly vulnerable to both environmental and economic shocks.
The finalisation of a legal framework by Nigeria comes as countries prepare for the 2025 UN Climate Change Conference (COP30) in Brazil, where carbon markets and financing for developing nations are expected to dominate the agenda.
Speaking earlier, the Country Director of Search for Common Ground, about Ouattara, said the Niger Delta remained central to Nigeria's carbon offset ambitions but warned that decades of neglect, gas flaring, and artisanal refining had left the region trapped in a cycle of ecological damage, underdevelopment, and insecurity.
Ouattara described the Niger Delta as a "paradox of abundance and adversity."
"While it remains one of the richest regions in terms of natural resource endowment, decades of gas flaring, oil spills, artisanal refining, and unsustainable extraction practices have left communities grappling with environmental degradation, loss of livelihoods, and declining health. Carbon emissions in the region are among the highest in Africa, largely due to gas flaring and the informal oil economy. These emissions not only contribute significantly to global climate change, but also erode the resilience of local ecosystems and heighten socio-economic vulnerabilities," he said.
Ouattara explained that the EU-funded Community-Centred Approach to Transforming Criminality and Violence in the Niger Delta Project had provided an entry point for addressing these challenges by commissioning the University of Port Harcourt to conduct the scoping study on carbon offsets.
The study, he noted, highlighted how carbon market opportunities could be harnessed not only to reduce emissions but also to create alternative livelihoods, restore ecosystems, and strengthen community resilience.
"Crucially, by aligning carbon offset strategies with the aspirations of local communities, this initiative ensures that environmental solutions also serve as peacebuilding tools, breaking the cycle of ecological harm, economic exclusion, and conflict, and paving the way for a greener, safer, and more prosperous Niger Delta," he said.