The federal government of Nigeria is laying the foundation for a significant $2.5 billion carbon market through the establishment of a new committee.

Officially inaugurated by Nigeria’s Vice President, Kashim Shettima, the Intergovernmental Committee on Carbon Market Activation Plan aims to develop a systematic blueprint for a sustainable carbon market, aligning with President Bola Ahmed Tinubu’s objective to minimize Nigeria’s carbon emissions. Supported by the Africa Carbon Market Initiative, this initiative strengthens Nigeria’s participation in the lucrative $2.5 billion carbon market.

Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, chairs the committee, which was announced by President Tinubu at COP28 in December 2023.

During the inauguration at the Presidential Villa, Abuja, Shettima emphasized the administration’s strategy to utilize natural gas as a transitional fuel and the committee’s role in formulating a national carbon market strategy.

This plan is expected to attract significant investments, facilitate emission reductions, and promote sustainable growth in Nigeria.

Shettima stated:

“However, the intervention we seek can’t be achieved unless the best minds of this nation come together to oversee our transition, and I do not doubt that we are on the right track, especially with the calibre of the technocrats that are in this room.

“We gather today as part of the broader initiative to position Nigeria and, by extension, Africa in green growth manufacturing and industrialization. This underscores our commitment to sustainable development and environmental stewardship.

“This justifies our focus on natural gas as a transition fuel alone site investment in renewable energy sources. Our mission is to meet the needs of the present while safeguarding the future.

“The sincerity of our commitment to coordinating carbon-related market plans and initiatives has never been in doubt. The Intergovernmental Committee on Carbon Market stands as a testament to our dedication to developing a national carbon market strategy.”

The VP further noted the implementation of the carbon market mechanism signifies a major shift, urging committee members to view it as a call for collaboration, innovation, and collective action.

He emphasized the transition from conference ideas to actionable steps, highlighting the partnership with the African Carbon Market Initiative as a step towards environmental responsibility and positioning Nigeria as a prime destination for carbon market investment.

This move, he stated, marks a historical step in enlarging Nigeria’s role in both voluntary and mandatory carbon markets, with the potential to unlock significant climate financing.

On his part, Co-chairman Mr. Zacch Adedeji acknowledged the initiative’s potential for Nigeria’s sustainable development and praised the Vice President’s dedication to advancing Nigeria’s carbon market.

He promised that the committee would collaborate closely with the African Carbon Market Initiative to exploit Nigeria’s substantial carbon potential, valued at over $2 billion.

Similarly, Dr. Salisu Dahiru, the Director-General of the National Council on Climate Change, mentioned that the committee has been proactive since its inception in December 2023 by President Tinubu during COP28 in Dubai.

Dahiru pointed out that carbon market and trading are crucial for any country’s climate change mitigation and adaptation strategies, contributing to global climate management efforts.

From the News Source: Techeconomy