Nigeria has taken a formal step into the global carbon trading system, authorising the transfer of 5.2 million carbon credits generated from clean cooking projects under Article 6 of the Paris Agreement. The approval, issued through the National Council on Climate Change (NCCC), allows the credits to be sold internationally under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a United Nations-backed mechanism designed to offset emissions from the aviation sector.
The March 11 authorisation, granted to clean cooking company BURN and its partners, marks the first time Nigeria has approved the export of carbon credits tied to emissions reductions. It signals a shift from policy design to implementation, as the country begins to operationalise its carbon market framework.
According to reporting by Ecofin Agency and StakeBridge, the credits were generated through the large-scale distribution of fuel-efficient cookstoves, which reduce reliance on firewood and charcoal, lower greenhouse gas emissions, and limit deforestation. Under Article 6.2 of the Paris Agreement, these emissions reductions can be transferred as internationally traded mitigation outcomes between countries and private entities.
From Policy to Market
Nigeria’s entry into Article 6 carbon markets comes amid broader efforts to build a domestic carbon trading system capable of attracting climate finance and supporting development priorities. In 2025, the federal government launched the Nigeria Carbon Market Activation Policy (NCMAP), a framework designed to mobilise up to $2.5 billion in carbon market investment by 2030.
The NCCC, which oversees the framework, described the authorisation as part of a strategy to align emissions reduction with economic opportunity. Omotenioye Majekodunmi, Director-General of the Council, said the move reflects a commitment to ensuring that carbon finance delivers tangible local benefits.
“Nigeria is committed to building a transparent and high integrity carbon market that channels climate finance into real development outcomes for our people,” Majekodunmi said, according to StakeBridge.
The approval also builds on earlier steps. In February 2026, Nigeria issued its first set of industrial-scale carbon credits through the Releaf Earth project, generating 190 verified credits. That initial issuance, though modest in scale, signaled the beginning of a broader pipeline of carbon projects.
Officials say the clean cooking sector provides a practical entry point. Roughly 80 percent of Nigerian households rely on biomass fuels such as firewood and charcoal for cooking, making the sector a significant source of emissions and indoor air pollution. Projects that replace traditional stoves with fuel-efficient alternatives reduce both emissions and health risks, while generating measurable carbon savings.
Peter Scott, founder and chief executive of BURN, described the authorisation as a milestone in expanding access to cleaner energy. “A significant step forward in our mission to expand access to clean cooking solutions for households across Nigeria,” he said, as cited by StakeBridge.
Linking Households to Global Markets
The mechanism underpinning the transaction reflects a growing trend in climate finance. Under Article 6 of the Paris Agreement, countries can cooperate by transferring emissions reductions across borders. These reductions, once verified, can be purchased by governments or corporations seeking to meet climate targets.
In this case, the credits will be sold through CORSIA, which requires airlines to offset emissions growth beyond 2019 levels. For Nigeria, participation in this system offers a pathway to attract foreign investment while linking local projects to global climate commitments.
Ecofin Agency reports that the authorisation enables BURN and its partners, including Key Carbon, to sell the 5.2 million credits internationally. The scale of the approval places Nigeria among a growing number of African countries testing Article 6 mechanisms.
In Malawi, similar clean cooking credits were approved for CORSIA in late 2025. Ghana has already completed bilateral transfers under Article 6 through cooperation with Switzerland. These developments suggest a regional shift toward leveraging carbon markets as a source of climate finance.
Yet approaches differ. In Kenya, authorities recently declined to approve the export of credits from a project led by Koko Networks, citing the need to retain control over carbon revenues and volumes. The decision highlights ongoing debates over how African countries balance participation in global markets with domestic priorities.
Climate Finance and Industrial Policy
Nigeria’s carbon market ambitions are also shaped by external pressures and economic considerations. The European Union’s Carbon Border Adjustment Mechanism (CBAM), which places a carbon cost on imports, has increased the urgency for countries to reduce emissions and develop credible accounting systems.
At the same time, officials see carbon trading as a way to diversify revenue streams and reduce reliance on traditional financing. According to National Update, Nigeria’s broader carbon market framework could attract billions of dollars in investment across sectors such as renewable energy, reforestation, and climate-smart agriculture.
The clean cooking initiative also intersects with industrial policy. BURN has invested more than $9.6 million in Nigeria, including a manufacturing facility in Kano with a production capacity of about 40,000 stoves per month. This local production model links carbon finance to job creation and technology transfer, aligning climate goals with economic development.
Still, the expansion of carbon markets raises questions about governance, transparency, and verification. Carbon credits depend on accurate measurement of emissions reductions, and past markets have faced criticism over inflated claims and weak oversight.
StakeBridge notes that Nigeria’s decision places its emerging carbon market under early international scrutiny. Verification systems, regulatory clarity, and institutional capacity will determine whether the market attracts sustained investment.
A Contested but Expanding System
Beyond Nigeria, carbon markets remain a contested tool in global climate policy. Proponents argue that they unlock finance for mitigation projects in developing countries. Critics warn that poorly regulated markets can allow emitters to offset rather than reduce emissions, while host countries may not capture full value.
In Nigeria’s case, the scale of the clean cooking project highlights both opportunity and complexity. The distribution of efficient stoves reduces fuel use and emissions, but also depends on sustained adoption, behavioural change, and supply chains that reach rural households.
There are also broader structural questions. As carbon markets expand, countries must decide how to balance immediate financial gains with long-term climate goals, including the need to meet their own nationally determined contributions under the Paris Agreement.
What Comes Next
Nigeria’s first Article 6 authorisation signals the beginning of a new phase in its climate policy, where frameworks are translated into transactions. With thousands of project proposals already submitted under the national carbon market framework, according to National Update, the pipeline is expected to grow.
For policymakers, the next steps lie in strengthening oversight systems, ensuring transparency in credit issuance, and aligning carbon market activities with national development priorities. Effective monitoring, clear benefit-sharing mechanisms, and robust verification processes will be central to maintaining credibility.
As international demand for carbon credits increases, Nigeria’s experience will test whether carbon markets can deliver both emissions reductions and measurable gains for local communities.
The authorisation of 5.2 million credits marks an entry point. How the system evolves will determine whether carbon trading becomes a durable source of climate finance or another contested layer in the global response to climate change.
