***Issues 25 Letters of Authorisation
The Federal Government has intensified efforts to unlock domestic financing for Nigeria’s carbon market, declaring that local funding is critical to accelerating climate projects and reducing dependence on lengthy international validation processes.
The government disclosed this at a stakeholders’ workshop held in Abuja under the Policy and Regulatory Innovations for Scaling Markets (PRISM) Nigeria Initiative, where officials also revealed that Nigeria has issued 25 Letters of Authorisation (LoAs) to facilitate the monetisation of carbon assets.
PRISM Nigeria is a policy and regulatory engagement programme 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.
The initiative seeks to integrate carbon markets into Nigeria’s domestic financial system, enabling carbon-linked revenues to be recognised as credible investment assets capable of attracting local capital for clean cooking, distributed renewable energy and nature-based climate projects.
Delivering the keynote address, the Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement, Mr. Ibrahim Shelleng, described the workshop as both strategic and timely, stressing that Nigeria must move beyond policy formulation to practical implementation.
According to him, mobilising domestic finance will give Nigeria greater ownership of its climate agenda while accelerating project delivery.
“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,” Shelleng said.
He also clarified that climate finance should not be viewed solely as international funding, explaining that it encompasses both domestic and external resources directed towards climate change mitigation and adaptation.
Also speaking, the Director of Energy, Transportation and Infrastructure at the National Council on Climate Change (NCCC), Mr. Michael Ivenso, said Nigeria’s carbon market presents a major opportunity to finance the country’s clean cooking transition, with the potential to positively impact about 45 million Nigerians by 2030.
Ivenso noted that for carbon credits to attract significant investment, they must be structured as recognised tradable financial instruments.
He called for stronger participation by domestic financial institutions, adding that development finance institutions would play a critical role in deepening the carbon market.
The NCCC official disclosed that since May 2026, Nigeria has issued 25 Letters of Authorisation (LoAs), describing them as sovereign instruments that enable the monetisation and international trading of carbon assets generated within the country.
He stressed that the success of the market would depend on the establishment of a credible Monitoring, Reporting and Verification (MRV) framework capable of assuring investors of the integrity of Nigeria’s carbon credits.
“Every tonne of emissions reduced must be accurately measured and verified,” he said.
According to organisers, research, regulatory mapping and consultations carried out under the PRISM initiative have identified 15 priority regulatory interventions required to strengthen Nigeria’s carbon market.
The proposed reforms target major financial regulators, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the National Insurance Commission (NAICOM), the National Pension Commission (PenCom), as well as relevant ministries and market institutions.
The initiative builds on the success of its first phase in Kenya, where engagement with financial regulators helped advance the recognition of carbon revenues within banking, capital market, pension and insurance frameworks, providing a model for Nigeria’s emerging carbon economy.