Over 80,300 Nigerians die every year from smoke inhalation caused by cooking over firewood and charcoal. In rural villages and urban slums alike, women spend hours tending open fires that poison the air their families breathe. Yet this crisis has become an unexpected opportunity—one that is attracting diaspora investors, international capital, and government backing.
In February 2026, BURN, the world’s leading clean cookstove company, announced a major expansion in Nigeria. The company, which has already distributed nearly one million fuel-efficient stoves across the country since 2018, is scaling production at its ISO-certified assembly plant in Kano State. With capacity to manufacture 100,000 units per month, BURN is positioned at the centre of Nigeria’s ambitious clean cooking transition.
The timing is critical. Nigeria’s Federal Government has launched an 80 Million Clean Cookstoves Project, targeting $5 billion in annual carbon credit revenues by 2027. The Nigeria Carbon Market Activation Policy and the 2026 Tax Reform Act have created the regulatory framework needed to attract private investment. For diaspora investors, this represents a rare convergence: a profitable business opportunity that also delivers measurable social and environmental impact.
Why This Matters for Diaspora Investors
The carbon finance model works. BURN has already subsidised cookstove prices by 60 to 100 percent using carbon finance, delivering approximately $15 million in discounts to Nigerian households. This means a $40 stove can be purchased for as little as $5—making clean cooking accessible to low-income families while creating a sustainable business model for investors.
Across Africa, BURN has distributed 6.3 million clean cooking appliances, improving the lives of 32.5 million people. Households have saved $2.3 billion in fuel costs, indoor air pollution has dropped by 65 to 100 percent, and forests have been protected by saving more than 36.5 million tonnes of wood.
BURN’s Kano plant employs approximately 700 people, nearly 40 percent of whom are women. This is not just a feel-good statistic—it is a sign of sustainable business operations. For diaspora investors concerned about where their money goes, BURN’s model demonstrates that profitability and local employment can coexist.
Nigeria’s government has made clean cooking a national priority, with senior officials from the Presidency actively championing the sector. This level of policy support reduces regulatory risk and signals long-term market stability. The 80 Million Cookstoves Project is not a pilot—it is a nationwide commitment.
The Investment Landscape
Diaspora investors have multiple entry points into Nigeria’s clean cooking sector. Carbon credit investments offer exposure to a rapidly growing global market—Nigeria’s carbon credit revenues are projected to reach $5 billion annually by 2027. Distribution networks provide opportunities for entrepreneurs who want hands-on involvement in last-mile delivery. Real estate developers can integrate clean cooking infrastructure into housing projects. And supply chain participants can support the local manufacturing ecosystem that BURN and other companies are building.
The sector also aligns with global ESG (Environmental, Social, and Governance) investment trends. Institutional investors and development finance institutions are increasingly directing capital toward climate-positive ventures in Africa. Diaspora investors who position themselves early in Nigeria’s clean cooking transition stand to benefit from this broader capital flow.
The Numbers Behind the Opportunity
Nigeria has approximately 40 million households, the vast majority of which still rely on firewood, charcoal, or kerosene for cooking. The government’s target of 80 million clean cookstoves implies coverage for every household, with replacements factored in. At an average retail price of $20-40 per stove (before carbon finance subsidies), the total addressable market exceeds $1.6 billion in hardware alone—before accounting for carbon credits, fuel savings, and ancillary services.
Carbon credits generated by clean cookstove distribution have been trading at $5-15 per tonne of CO2 equivalent avoided. A single efficient cookstove can generate 2-5 tonnes of carbon credits per year. At scale, a distribution network of 100,000 stoves could generate $1-7.5 million annually in carbon credit revenue alone.
Challenges and Considerations
The opportunity is significant, but it is not without challenges. Last-mile distribution in rural Nigeria remains logistically complex. Consumer education is essential—many households are unfamiliar with clean cooking technology and sceptical of new products. Currency volatility affects the economics of imported components, though BURN’s local manufacturing in Kano mitigates this risk substantially.
Regulatory frameworks, while improving, are still evolving. The carbon credit market in Nigeria is nascent, and verification processes can be slow. Diaspora investors should conduct thorough due diligence and work with experienced local partners who understand the regulatory landscape.
What This Means for the Diaspora
Nigeria’s clean cooking opportunity is part of a larger energy transition that is reshaping the continent. For diaspora investors already considering Nigeria exposure, clean cooking offers a tangible, measurable, and profitable entry point. Unlike speculative real estate or volatile stock markets, clean cooking investments generate verifiable impact—every stove distributed reduces emissions, saves fuel costs, and protects health.
The sector also creates a bridge between diaspora capital and local communities. When a diaspora investor funds a distribution network in their home state, they are not just generating returns—they are creating jobs, reducing deforestation, and improving health outcomes for families they may know personally.
For those who have spent years sending remittances home, clean cooking investment represents a shift from consumption-based support to wealth-creating investment. The money does not just flow out and get spent—it builds an asset that continues to generate value.
Key Takeaways
- Nigeria’s 80 Million Cookstoves Project targets $5 billion in annual carbon credit revenues by 2027
- BURN has distributed nearly 1 million stoves in Nigeria, employing 700+ people at its Kano plant
- Carbon finance makes stoves affordable ($5-40) while creating profitable investment opportunities
- Government backing through the Carbon Market Activation Policy and Tax Reform Act reduces investment risk
- Multiple entry points exist: carbon credits, distribution networks, real estate integration, and supply chain participation
Sources: BBC Africa, Punch Nigeria, BURN Manufacturing, Nigeria Federal Ministry of Environment, World Health Organization