The Evolution of a Fully Structured Carbon Market Explained

Following the recent launch of the National Carbon Market Framework and its unveiling by the Federal Government of Nigeria at the Abu Dhabi Sustainability Week in January 2026, Nigeria’s carbon market has evolved from mere concept to a structured framework that integrates climate legislation, market activation policies, and procedural guidelines.

The framework aims to facilitate the trading of carbon credits, incentivize emissions reduction, and attract both domestic and foreign investment in green projects. It introduces robust monitoring, reporting, and verification systems, defined institutions, authorisation pathways and a national carbon registry that aligns with international standards.

With an estimated US$410 billion funding required to achieve Nigeria’s 2060 net-zero target, the carbon market has now been positioned as a key financing platform to drive emissions reductions across priority sectors.

This publication by TEMPLARS Partner, Desmond Ogba, and Associates, Joshua Olorunmaiye and examines how the market has evolved,Nabila Gaduya where the opportunities lie, and what project developers, investors and key stakeholders should know as Nigeria’s carbon market takes shape.

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