In a move to build a strong domestic carbon market, the federal government has given approval for the export of carbon credits from clean cooking projects for the first time.
This initiative marks a new step in its efforts to position the nation in global carbon markets.
Nigerian Government issued a letter of authorisation to the company BURN through the National Council on Climate Change (NCCC), allowing it to transfer carbon credits to the international aviation offset mechanism known as CORSIA.
The approval covers 5.2 million credits generated through the large-scale distribution of improved cookstoves. It allows the Kenyan firm and its partners, including Key Carbon, to sell these emissions reductions internationally under Article 6.2 of the Paris Agreement.
Under this framework, countries can cooperate to meet their nationally determined contributions by transferring emission reductions through internationally transferred mitigation outcomes (ITMOs). The mechanism enables cross-border carbon credit transactions between governments and private entities, helping to build a decentralized carbon market while generating funding for climate-related activities.
The authorisation comes as Nigeria moves to develop its own carbon market ecosystem, partly driven by external pressures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which is pushing industries to reduce emissions.
In 2025, the government launched the Nigerian Carbon Market Activation Policy (NCMAP), setting out a roadmap to mobilize $2.5 billion by 2030 through the creation and trading of carbon credits.
The head of the NCCC, Dt Nkiruka Maduekwe, said climate finance should serve local populations and that Nigeria’s carbon market framework is designed to support both emissions reduction and sustainable development.
In February 2026, the country issued its first industrial-scale carbon credits through the Releaf Earth project, generating 190 verified carbon credits.
Nigeria’s move reflects a broader shift across Africa. In Malawi, carbon credits from similar projects were approved for CORSIA in November 2025, while Ghana—working with Switzerland—has already completed transfers under Article 6, according to Ecofin Agency.
However, such mechanisms remain contested. In Kenya, authorities recently declined to approve the export of credits from a project led by Koko Networks, signaling a desire to retain control over both volumes and revenues linked to carbon trading
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