Nigeria has moved to formalise its entry into international carbon markets with the publication of its National Carbon Market Framework (NCMF) and the accompanying Manual of Procedures (MoP). Together, the documents create the country’s most comprehensive blueprint to date for both voluntary carbon activities and participation in Article 6 mechanisms under the Paris Agreement.
One of the most closely monitored elements of the new framework is an 8% charge on corresponding adjustments (CAs)—the official accounting process required when transferring UN-recognised carbon credits across borders. Because CA-related fees can differ widely from one host country to another, Nigeria’s decision has drawn strong attention from project developers evaluating long-term costs. In addition to the CA fee, the government has set a $1,000 payment for securing a Letter of Authorisation (LoA), a key permission step that signals—but does not guarantee—that a CA may later be granted.
The newly released NCMF and MoP spell out responsibilities for developers, government bodies and private-sector participants, providing clearer expectations around project approvals, standard-setting and regulatory oversight. Their adoption was confirmed by the National Council on Climate Change, a body that includes direct input from President Bola Ahmed Tinubu.
To support implementation, Nigeria has introduced a Five-Year Roadmap for Carbon Market Participation. This plan outlines a series of measures designed to strengthen institutional readiness and expand participation in both Article 6 and voluntary markets. Priorities for 2025 include launching a national carbon registry, establishing a ‘whitelist’ of eligible project types, testing initial Article 6 pilots, initiating bilateral partnerships and setting the rules for trading Paris-aligned credits. In 2026, focus will shift toward completing methodologies and robust systems for measurement, reporting and verification.
Over the longer term, the country aims to build an emissions trading system (ETS) and introduce a national carbon tax—two instruments expected to apply to sectors with the highest emissions footprints, including electricity generation, oil and gas, transportation, industrial processes, waste and land-use activities. A pilot phase for the carbon tax is currently planned for 2029.
Oversight of these developments will be led by the Carbon Market Office (CMO), housed within the NCCC secretariat. The office will be responsible for operating a national registry and managing revenues from Article 6.4 credit sales to ensure they support mitigation and adaptation priorities. Market participants are closely watching for the issuance of the first LoA, though the timeline remains unclear.