In a bold move toward sustainable development and green finance, Nigerian President Bola Tinubu has announced a sweeping new policy aimed at unlocking up to $2.5 billion in carbon credit investments by 2030.
This landmark initiative, known as the Nigeria Carbon Market Activation Policy, is designed to position the country as a continental leader in climate-smart investment and sustainable economic growth.
President Tinubu made the announcement on Wednesday during a high-level virtual dialogue on climate action and a just transition. The session was co-hosted by UN Secretary-General António Guterres and Brazilian President Luiz Inácio Lula da Silva as part of the lead-up to COP30, which Brazil will host.
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According to Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the policy was finalised in March 2025 and is part of Nigeria’s broader energy reform agenda. It reflects the country’s commitment to scaling climate ambition while pursuing economic resilience.
“We view climate action not as a cost to development, but as a strategic imperative,” President Tinubu said. “The global climate emergency demands our collective, courageous, and sustained leadership.”
At the heart of this policy is Nigeria’s resolve to integrate climate action with long-term economic development.
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The plan aims to tap into the high-integrity carbon credit market — an emerging asset class that allows countries to earn revenue by reducing carbon emissions — and use the proceeds to fund green infrastructure projects across the country.
This approach, Tinubu stressed, is about more than environmental stewardship. It’s about turning climate responsibility into opportunity — one that will boost investment, create jobs, and elevate Nigeria’s standing in the global green economy.
The Carbon Market Activation Policy aligns with Nigeria’s pledge to update its Nationally Determined Contributions (NDCs) under the UN Framework Convention on Climate Change (UNFCCC), with a full revision expected by September 2025.
The policy is also deeply connected to Nigeria’s Energy Transition Plan (ETP) — an ambitious roadmap to achieve net-zero emissions by 2060. The ETP targets five key sectors: power, cooking, transportation, oil and gas, and industry. To realize these goals, Nigeria will need an estimated $410 billion in investment.
To attract this level of financing, the government is actively reforming regulatory frameworks, providing fiscal incentives, and restructuring institutions to support progress in energy access, emissions reduction, and economic competitiveness simultaneously.
During the virtual dialogue, which brought together leaders from 17 countries — including blocs like the African Union, ASEAN, the EU, and China — President Tinubu emphasized Nigeria’s regional leadership role.
He highlighted the country’s involvement in Mission 300, a partnership with the World Bank and African Development Bank aimed at providing electricity access to 300 million Africans by 2030.
He also revealed plans to launch a Global Climate Change Investment Fund — a mechanism to blend public and private capital, reduce risks for green infrastructure projects, and finance scalable climate solutions. This fund will focus on:
- Green industrial hubs
- Electric mobility infrastructure
- Renewable energy mini-grids for underserved communities
- Regenerative agriculture initiatives
These efforts align with Nigeria’s National Energy Compact, which sets targets for expanding clean energy access and improving adoption of clean cooking solutions across the country.
President Tinubu’s latest announcement marks a significant turning point in Nigeria’s climate journey. By treating climate action as a driver of economic transformation rather than a trade-off, Nigeria is charting a bold, forward-thinking path — one that could shape the future of sustainable development across the African continent.
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