Friday, 27 March 2026

Nigeria enters the Global Carbon Market with 5.2 million Carbon Credits

Nigeria is stepping confidently onto the global climate stage, opening a new chapter in its emerging carbon market while advancing practical environmental solutions at home.

For the first time, Nigeria has authorised the international transfer of carbon credits generated within the country. The approval, issued through the National Council on Climate Change (NCCC), enables 5.2 million carbon credits from clean cooking initiatives to be exported under Article 6.2 of the Paris Agreement.

The authorisation was granted to BURN, a Kenyan clean energy company, allowing the firm and its partners, including Key Carbon, to transfer the credits to CORSIA, the global carbon offset mechanism used by the international aviation industry.

These credits were generated through the large-scale distribution of improved cookstoves, a technology that reduces reliance on traditional biomass fuels. By improving cooking efficiency, the initiative lowers emissions, eases pressure on forests, and helps deliver cleaner air in households and communities.

The development marks a major step in Nigeria’s effort to establish a credible domestic carbon market capable of attracting global climate finance. Through such frameworks, emissions reductions produced locally can be traded internationally as Internationally Transferred Mitigation Outcomes (ITMOs), a mechanism that enables countries to cooperate in achieving their Nationally Determined Contributions (NDCs) under the Paris Agreement.

This progress builds on policy groundwork laid in 2025, when Nigeria introduced the Nigeria Carbon Market Activation Policy (NCMAP). The strategy outlines a pathway to mobilise $2.5 billion by 2030 through the generation and trading of carbon credits.

According to NCCC Director-General, Dt Nkiruka Maduekwe, Nigeria’s carbon market framework is designed to ensure climate finance translates into real benefits for local communities while supporting national emissions reduction goals.

Momentum has already begun to build. In February 2026, the country issued its first industrial-scale carbon credits through the Releaf Earth project, which produced 190 verified carbon credits.

Nigeria’s move also comes as global climate policies increasingly shape economic realities. Instruments such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) are encouraging industries worldwide to reduce emissions or face new trade barriers, making strong carbon market systems more important than ever.

Within this evolving landscape, Nigeria’s approval of 5.2 million clean cooking carbon credits reflects a growing alignment between climate responsibility, economic opportunity, and everyday household needs.

From cleaner kitchens to participation in global carbon markets, the initiative underscores Nigeria’s expanding role in shaping sustainable solutions for the future.

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