Emmanuel Addeh in Abuja
The federal government, financial regulators and climate finance stakeholders have begun discussions on sweeping regulatory reforms aimed at unlocking domestic financing for Nigeria’s carbon market and accelerating investment in clean cooking, renewable energy and nature-based projects.
The discussions took place in Abuja under the Policy and Regulatory Innovations for Scaling Markets (PRISM) Nigeria initiative, a policy engagement programme designed to integrate carbon markets into Nigeria’s domestic financial system, allowing carbon-linked revenues to be recognised as investable assets capable of attracting local capital.
The initiative is being implemented by the Clean Cooking Alliance (CCA) in partnership with the Nigeria Off-grid Market Acceleration Programme (NoMAP) and the Global Off-Grid Solar Association (GOGLA), in collaboration with the Office of the Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement and the Nigerian Alliance for Clean Cookstoves.
Delivering the keynote address, the Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement, Ibrahim Shelleng, said the workshop came at a critical time as Nigeria shifts from climate policy development to implementation.
He argued that climate finance should no longer be viewed solely as international funding, stressing that domestic resources must become the cornerstone of Nigeria’s climate strategy.
“Domestic finance brings ownership, and it brings speed. Our communities cannot wait two to three years for international validation processes; we must look inward to raise the finance our climate projects need,” he said.
Also speaking, Director of Energy, Transportation and Infrastructure at the National Council on Climate Change (NCCC), Michael Ivenso, described carbon markets as a major opportunity to mobilise financing for Nigeria’s clean cooking sector, with the potential to positively impact about 45 million people by 2030.
He noted that while carbon credits offer an important source of alternative financing, they must be recognised as tradable financial instruments to attract investment. He also called for greater participation by domestic financial institutions, saying development finance institutions would play a vital role in expanding Nigeria’s carbon market.
According to him, the federal government’s issuance of 25 Letters of Authorisation since May represents an important milestone in strengthening the country’s carbon market framework by enabling the monetisation of carbon assets.
Ivenso stressed that credible monitoring, reporting and verification systems would be essential to maintaining the integrity of carbon assets and building investor confidence.
Drawing on research, regulatory mapping and stakeholder consultations in both Nigeria and Kenya, the PRISM initiative identified 15 priority regulatory interventions targeting key financial regulators, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), National Insurance Commission (NAICOM) and National Pension Commission (PenCom), alongside relevant ministries and market institutions.
The proposed reforms are structured around three pillars: establishing a stable carbon market infrastructure, expanding market participation and financial integration, and ensuring financial stability and risk mitigation.
Besides, participants at the workshop prioritised four immediate areas for further work, including the development of carbon credit-linked bond instruments, incentives for loans supporting carbon credit projects, integration of carbon credit data into climate risk databases, and inclusion of carbon credits in environmental, social and governance (ESG) and climate disclosures.
In his comments at the workshop, Rajeev Gupta of the Clean Cooking Alliance underscored the importance of reliable data to the growth of Nigeria’s carbon market.
“Nigeria needs more consistent data flowing through this system. Without good data, there’s no clear picture. Without a clear picture, there’s no informed decision-making. And without that, there’s no real growth in the clean cooking and carbon finance space,” he said.
The Clean Cooking Alliance, formerly the Global Alliance for Clean Cookstoves, is a non-profit organisation operating with the support of the United Nations Foundation to promote clean cooking technologies in lower and middle-income countries, while NoMAP is an independent market building programme aimed at addressing off-grid energy market barriers through policy and regulations, data and intelligence and direct interventions.
Also, GOGLA is a not-for-profit network representing over 200 organisations that provide clean, affordable, and off-grid electricity to households, businesses, and communities in developing countries.
