By Aliyu Umar Aliyu
As the world races toward cleaner growth and climate accountability, a new global economy is emerging quietly but rapidly: the carbon market. This is no longer a theoretical conversation reserved for diplomats and policy experts. It is now a real marketplace where countries attract billions in climate finance, technology transfer, jobs, and green investment through structured carbon trading systems.
Nigeria, Africa’s largest economy and one of the continent’s most strategic nations, should be leading this transition. Instead, we are at risk of being left behind. This is why President Bola Ahmed Tinubu should urgently establish a National Office on Carbon Market and immediately pursue a bilateral carbon market agreement with either Singapore or Switzerland under Article 6 of the Paris Agreement.
Article 6 of the Paris Agreement allows countries to cooperate by trading verified emission reductions, known as Internationally Transferred Mitigation Outcomes, or ITMOs. In practical terms, nations with strong climate projects can sell carbon credits to countries seeking to meet their climate obligations. This mechanism is already creating economic opportunities for countries that moved early and built the right legal and diplomatic frameworks.
Across Africa, governments are beginning to seize that opportunity. Ghana has moved decisively by signing cooperation agreements with Switzerland, Singapore, Sweden, South Korea, and Liechtenstein. These deals are helping Ghana attract climate finance and position itself as a serious player in the future green economy. Nigeria, with far greater scale, population, landmass, and economic influence, has no reason to remain on the sidelines.
Nigeria possesses many of the natural assets needed to thrive in the carbon market. We have vast reforestation potential across degraded lands, mangrove ecosystems in the Niger Delta capable of storing enormous carbon volumes, renewable energy opportunities in solar and hydro, gas-flaring reduction prospects, and agricultural regions suitable for regenerative farming and soil carbon projects. States such as Niger State could emerge as pilot carbon investment hubs, while other regions could benefit from afforestation, methane capture, and clean cooking initiatives.
Yet despite these advantages, investors want certainty before committing capital. They want clear rules, efficient approvals, transparent accounting systems, and a dependable national counterpart. Nigeria currently lacks a central institution solely dedicated to coordinating this opportunity. Responsibilities remain dispersed, decisions are slower than they should be, and uncertainty weakens investor confidence.
That is why the establishment of a National Office on Carbon Market has become urgent. Such an office would coordinate policy, manage approvals, lead investor engagement, supervise project standards, handle ITMO authorisation, and ensure accurate national accounting systems. It would work closely with the National Council on Climate Change and the Federal Ministry of Environment, while enjoying the authority and speed that only presidential backing can provide.
Beyond administration, Nigeria must also move diplomatically. Rather than negotiating with many countries at once, the government should begin strategically with either Singapore or Switzerland. Singapore is a respected global financial hub actively pursuing carbon partnerships and would bring credibility, liquidity, and demand for quality credits. Switzerland has already demonstrated leadership in Article 6 agreements and is known for high environmental standards and premium carbon transactions.
A bilateral agreement with either country would send a strong message to the international community that Nigeria is ready for serious climate business. It would likely open the door to further partnerships with Japan, Korea, Sweden, and other compliance buyers seeking credible markets in Africa.
This is not merely an environmental matter. It is an economic opportunity. Carbon markets can help finance rural livelihoods, tree planting, clean energy expansion, agricultural modernisation, community resilience, and environmental restoration. They can create jobs for young Nigerians in project management, engineering, data systems, verification services, agribusiness, and sustainability consulting. At a time when Nigeria seeks foreign exchange earnings, investment inflows, and economic diversification, carbon finance offers all three.
History often rewards countries that act early, while others hesitate. Nigeria has the population, diplomatic influence, entrepreneurial energy, and natural resources to become Africa’s carbon powerhouse. But potential alone has never built prosperity. Action does.
Mr. President should seize this moment by establishing the National Office on Carbon Market, directing immediate negotiations with Singapore or Switzerland, launching a national Article 6 implementation strategy, and supporting pilot projects across willing states. The global market is moving, capital is moving, and diplomacy is moving. Nigeria must move too.
Aliyu Umar is a Public Affairs analyst and can be reached via aliyu.umar721@gmail.com
