President Bola Tinubu has said Nigeria is positioning its newly activated carbon market to generate between $2.5 billion and $3 billion annually over the next decade, as the country seeks to unlock climate finance and drive its energy transition agenda.
The President disclosed this on Tuesday while speaking to global leaders, policymakers and investors at the 2026 Abu Dhabi Sustainability Week, themed “The Nexus of Next: All Systems Go.” He said the Federal Government had strengthened regulatory frameworks to improve climate governance and attract investments into low-carbon and green industrial projects.
Tinubu said Nigeria was leveraging climate action as a development opportunity, noting that the country had launched a climate and green industrialisation investment drive aimed at mobilising between $20 billion and $30 billion in climate finance annually.
According to him, the carbon market initiative is built around the National Carbon Market Activation Policy and the newly launched National Carbon Registry, which are designed to enhance transparency, emissions reporting and verification, making Nigerian carbon credits more attractive to international buyers.
He explained that the National Carbon Market Framework, approved in October 2025, provides clear rules for carbon credit registration, issuance and verification. In addition, the Climate Change Fund was operationalised in November, while funding for the National Council on Climate Change was restored in the federal budget.
Tinubu said the carbon market would encourage emissions-reduction projects in sectors such as forestry, renewable energy, clean cooking and agriculture, while creating new income opportunities for businesses and local communities.
On power sector reforms, the President highlighted the 2023 Electricity Act, which allows decentralised electricity generation and distribution. He said the law had created opportunities to extend reliable energy to rural communities, off-grid health centres, schools, markets and other underserved areas.
The President also outlined financing initiatives supporting Nigeria’s climate ambitions, including a $500 million climate investment platform for climate-resilient infrastructure, a national climate platform aimed at mobilising $2 billion in capital, and a $50 billion sub-regional green bond, which he said was nearly fully subscribed.
He acknowledged the support of development partners, noting that the World Bank is implementing a $750 million programme to expand access to clean electricity for more than 17.5 million Nigerians.
Tinubu said Nigeria’s energy transition plan combines climate mitigation, industrial growth and social development, with the country targeting net-zero emissions by 2060 while ensuring universal access to energy.
He urged developed nations to deepen collaboration with Nigeria through technology transfer, innovation and knowledge sharing, stressing that the use of artificial intelligence to improve efficiency has become an immediate priority rather than a future aspiration.
Nigeria submitted updated climate commitments to the United Nations in September 2025, reaffirming its intention to use market-based tools, including carbon trading, to meet emissions targets while supporting economic growth.
