Nigeria's carbon market is now operational following the approval of the National Carbon Market Activation Policy in October 2025 and the launch of the National Carbon Registry. This creates significant opportunities for carbon credit buyers and project developers.
Market Overview
Nigeria's carbon market is projected to generate $2.5-3 billion annually over the next decade. The country's vast natural resources and large population create substantial potential for carbon credit generation.
Eligible Project Categories
Forestry (REDD+)
Forest conservation and reforestation projects
Potential: HIGH
Renewable Energy
Solar, wind, and hydro projects
Potential: HIGH
Clean Cooking
Improved cookstoves and LPG distribution
Potential: VERY HIGH
Agriculture
Sustainable farming practices
Potential: MEDIUM
Waste Management
Methane capture and recycling
Potential: MEDIUM
How the Market Works
Project Registration: Projects must be registered with the National Carbon Registry and validated by accredited third-party verifiers.
Credit Issuance: Upon verification of emission reductions, carbon credits are issued and can be traded domestically or internationally.
Compliance and Voluntary Markets: Credits can be used for compliance purposes or sold in voluntary carbon markets.
Key Considerations for Investors
- Additionality: Projects must demonstrate that emission reductions would not have occurred without carbon finance
- Permanence: Particularly important for forestry projects
- Co-benefits: Projects with social and environmental co-benefits command premium prices
- Verification Standards: International standards (VCS, Gold Standard) are recognized
I-STRATA Advisory
We facilitate carbon credit investments in Nigeria, from project identification to due diligence and transaction support. Our network includes verified project developers across all eligible categories.