The Federal Government has issued a Letter of Authorisation for the international transfer of 5.2 million carbon credits. This authorisation—the first of its kind from Nigeria under Article 6 of the Paris Agreement—marks a clear shift from policy ambition to active market participation.
In this explainer, we break down what this development means, unpack the key concepts, examine its implications, and highlight emerging opportunities for project developers and investors, as well as what lies ahead for Nigeria’s carbon market.
What has happened
The Federal Government, acting through the National Council on Climate Change, has issued Nigeria’s first Letter of Authorisation under Article 6 of the Paris Agreement.
The Letter authorises Burn Nigeria, a clean cooking company, to transfer 5.2 million carbon credits to the Carbon Offsetting and Reduction Scheme for International Aviation. Those credits come from the company’s projects in Nigeria.
The development marks Nigeria’s first operational step into the international carbon market. Moreover, it signals a growing openness to similar transactions.
The key concepts explained
A few concepts help make sense of the announcement. Carbon credits are units representing a verified reduction or removal of greenhouse gas emissions. Each credit typically equals one tonne of carbon dioxide equivalent.
Projects generate these credits in several ways. Clean energy installations and methane capture both qualify, as do other verified emission-reduction activities.
Article 6 of the Paris Agreement, meanwhile, governs how countries authorise the international transfer of such credits. A Letter of Authorisation is the instrument through which a government gives that permission.
Why it matters for developers and investors
The authorisation shows a working route from Nigerian project to international buyer. Consequently, developers can plan on a clearer basis than before.
Our explainer unpacks the development, its implications, and the emerging opportunities for project developers and investors in Nigeria’s carbon market. Click the button below to read the publication.
