Power and local weather consultants have urged the Federal Authorities to deepen investments and introduce stronger coverage incentives for large-scale photo voltaic installations nationwide, noting that such efforts might unlock an estimated $2.5 billion carbon market alternative for the nation.
In separate interviews with Nairametrics, consultants emphasised that photo voltaic growth stays probably the most viable path to decreasing emissions, reaching the nation’s net-zero goal by 2060, and positioning Nigeria as a significant participant within the fast-growing international carbon credit score market, valued at over $100 billion yearly.
They argue that widespread photo voltaic deployment wouldn’t solely reduce dependence on fossil fuels but in addition generate hundreds of inexperienced jobs, enhance rural electrification, and enhance Nigeria’s participation in worldwide carbon buying and selling.
Based on Dr. Sunday Okoro, an Abuja-based renewable vitality guide, photo voltaic vitality represents Nigeria’s quickest path to monetizing emission reductions by way of worldwide carbon buying and selling mechanisms.
“Each ton of carbon dioxide prevented by way of photo voltaic era might be quantified and traded as carbon credit,” Dr. Okoro defined.
“Nigeria stands to achieve considerably if it mainstreams photo voltaic tasks in residential, business, and industrial sectors,” he added.
He famous that an enabling coverage atmosphere comprising tax incentives for photo voltaic adopters, simplified licensing, and clear carbon credit score certification guidelines would entice non-public funding and deepen Nigeria’s carbon market participation.
Equally, the Managing Director of SolarTech Renewables Ltd, Mrs. Aisha Bulila, identified that Nigeria’s distinctive photo voltaic potential stays largely underutilized.
“We’re sitting on one of many highest photo voltaic irradiation belts on the earth, but our put in capability is lower than 2% of nationwide demand.
“If we scale up installations, we will drastically scale back reliance on diesel turbines and qualify for important carbon income,” she mentioned.
Nigeria’s Power Transition Plan (ETP) outlines a roadmap to realize net-zero emissions by 2060, however consultants say implementation stays gradual, significantly in rural electrification and off-grid photo voltaic.
Mr. Ibrahim Danjuma, a coverage analyst with the African Clear Power Initiative, mentioned Nigeria’s carbon market potential will stay underexploited till renewable vitality tasks are absolutely built-in into the nationwide emissions accounting system.
“The voluntary carbon market can usher in billions if Nigeria quantifies its prevented emissions. However that requires knowledge transparency, venture validation, and strong monitoring methods. Photo voltaic growth is the simplest entry level,” Danjuma mentioned.
He famous that whereas the Nigeria Carbon Market Activation Plan, inaugurated in 2023 gives a framework for home carbon credit score certification, implementation should now be backed by sensible incentives and large-scale renewable tasks to draw buyers.
Business gamers agree that carbon finance might be the lacking hyperlink between renewable viability and business scalability.
“The worldwide carbon market is increasing quickly,” Dr. Okoro warned. “If Nigeria doesn’t speed up its photo voltaic adoption and combine emissions accounting, we threat lacking out on a $2.5 billion alternative.”
Regardless of its potential, consultants warning that the credibility of Nigeria’s carbon market will rely on integrity and transparency.
The worldwide carbon commerce has confronted scrutiny for “phantom credit” tasks that declare emission reductions and not using a measurable affect.
Dr. Adaobi Eke, a local weather finance guide, emphasised the necessity for strong Measurement, Reporting, and Verification (MRV) methods to make sure that each carbon credit score issued displays actual, quantifiable financial savings.
“The world is prepared to pay for high-quality credit, however integrity is non-negotiable. Nigeria’s registry should meet worldwide requirements, or patrons will look elsewhere,” she mentioned.
Dr. Eke really helpful that Nigeria’s carbon registry undertake internationally acknowledged protocols similar to Verra’s Verified Carbon Normal (VCS) and Gold Normal certification, each of which guarantee high-integrity credit score issuance.
The Federal Authorities, by way of the Nigerian Electrical energy Regulatory Fee (NERC), has begun to acknowledge the rising business potential of photo voltaic adoption.
In a coverage shift signaling stronger local weather finance ambition, President Bola Tinubu just lately authorized the Nationwide Carbon Market Framework, operationalized the Local weather Change Fund, and restored the Nationwide Council on Local weather Change (NCCC) to the federal funds line.
Based on Stanley Nkwocha, Senior Particular Assistant to the President on Media and Communications (Workplace of the Vice President), the framework goals to ascertain and handle Nigeria’s participation in carbon markets, unlocking between $2.5 billion and $3 billion yearly over the subsequent decade.
The transfer, introduced forward of the 2025 UN Local weather Change Convention (COP30) in Brazil, aligns with the administration’s dedication to place Nigeria as a number one vacation spot for carbon finance and clear vitality investments in Africa.
Earlier in April, Tinubu confirmed that Nigeria’s Carbon Market Activation Coverage would function the muse for mobilizing as much as $2.5 billion in high-integrity carbon credit by 2030. The plan additionally seeks to incentivize native renewable vitality builders by way of simplified carbon registration and worldwide credit score buying and selling entry.
Whereas Nigeria’s clear vitality insurance policies and frameworks are taking form, consultants insist that implementation velocity will decide whether or not the nation captures its carbon finance potential or lags behind regional rivals like Kenya and South Africa.
