Tinubu Approves $3.8bn Carbon Market Investment to Boost Sustainable Infrastructure in Nigeria

President Bola Ahmed Tinubu has approved a landmark investment valued at over $3.8 billion in Nigeria’s carbon market as part of deliberate efforts to strengthen sustainable infrastructure and integrate climate action into national development planning.

The approval aligns with the President’s Renewed Hope Agenda, which places environmental sustainability and climate resilience at the center of Nigeria’s economic growth strategy. By endorsing this initiative, the federal government aims to position Nigeria as a competitive participant in the expanding global climate economy.

Central to this development is the formal approval of the Carbon Market Framework for Nigeria, a policy structure designed to attract large-scale green investments and unlock long-term funding opportunities for climate-friendly projects across the country.

The framework operates under the supervision of the National Council on Climate Change (NCCC), an institution established through the Climate Change Act of 2021. The council functions directly under the Presidency, with the President serving as Chairman and the Vice President acting as Vice Chairman, underscoring the high-level commitment to climate governance.

Speaking during the Abu Dhabi Sustainability Week in the United Arab Emirates, the Director-General of the NCCC, Mrs. Omotenioye Majekodunmi, described the approval as a clear signal that Nigeria is fully prepared to welcome climate-focused investments.

According to her, the carbon market opens vast opportunities across multiple sectors, including renewable energy, clean cooking solutions, reforestation initiatives, climate-smart agriculture, and sustainable infrastructure development. These sectors are expected to play a critical role in reducing emissions while supporting economic diversification and job creation.

Majekodunmi explained that the newly approved framework provides a well-defined regulatory and institutional structure for carbon trading activities. This clarity allows both domestic and foreign investors to confidently finance environmentally sustainable projects while earning verifiable carbon credits.

She emphasized that with all regulatory approvals now finalized, Nigeria is strategically positioned to begin realizing tangible economic benefits. Estimates indicate that the country’s carbon market alone has the potential to attract over $3.8 billion in investments every year.

The director-general further disclosed that investor interest has been overwhelming. Since the initial approvals granted in October, the NCCC has reportedly received between 3,000 and 4,000 applications related to carbon market projects, reflecting strong confidence in Nigeria’s climate investment landscape.

Nigeria’s active participation at the Abu Dhabi Sustainability Week, she noted, forms part of broader efforts to strengthen international collaboration, particularly with the United Arab Emirates. These partnerships are expected to accelerate progress in areas such as sustainable finance, climate technology, renewable energy, and carbon trading systems.

Majekodunmi also highlighted that technology transfer, innovation, and local capacity building remain key priorities for the council. Plans are underway to enhance Nigeria’s technical expertise in clean energy solutions, climate-resilient agriculture, and sustainable infrastructure systems to ensure long-term impact and inclusive growth.