Niger State Government is intensifying efforts to participate in international carbon trading mechanisms under Article 6 of the Paris Agreement, with plans to develop methane reduction and landfill gas recovery projects as part of broader strategies to attract climate financing and promote sustainable development.
The initiative formed part of discussions held during a high-level engagement on the sidelines of the ongoing United Nations Framework Convention on Climate Change (UNFCCC) meeting in Bonn, Germany. The meeting brought together climate experts, government officials, investors and development partners to explore ways of expanding Nigeria’s participation in global carbon markets.
Governor Umar Mohammed Bago, who headed the state’s delegation, emphasized that carbon markets should not be treated merely as regulatory mechanisms but as viable economic platforms capable of generating investments and supporting development across critical sectors.
According to the governor, proceeds from carbon market activities could help finance infrastructure projects, accelerate the transition to cleaner energy sources, improve waste management systems, boost agricultural productivity and support environmental restoration programmes. He stressed that adopting a business-oriented approach would enable states and private investors to unlock the enormous economic benefits associated with carbon credits.
Bago noted that several sectors with strong potential for carbon credit generation remain underutilised in Nigeria. These include cement manufacturing, agriculture, forestry, aviation, waste management, and other industries capable of reducing greenhouse gas emissions through cleaner technologies and sustainable practices.
A major issue highlighted during the discussions was the delay in obtaining Letters of Authorisation (LOAs), a key requirement for countries and sub-national governments seeking access to international carbon trading systems under Article 6 of the Paris Agreement. Stakeholders observed that lengthy approval procedures have slowed project implementation and discouraged prospective investors.
Representatives of the National Council on Climate Change assured participants that measures are being introduced to streamline approval processes, shorten waiting periods and improve collaboration among state governments, private sector players and international development partners.
Despite growing interest in the carbon market, participants acknowledged that institutional and technical capacity gaps remain significant obstacles to the development of carbon projects in Nigeria. These challenges, they noted, have affected project design, monitoring systems and overall investor confidence.
The statement revealed that ICA Finance has expressed interest in supporting Niger State’s proposed methane capture and landfill gas recovery initiatives under the Article 6 framework. Such projects are expected to reduce methane emissions from waste disposal sites while generating carbon credits that can be traded in international markets.
Experts at the meeting also pointed to Nigeria’s vast potential for earning carbon revenues from sectors such as oil and gas, cement production, agriculture, aviation and waste management. They said properly structured carbon projects could attract billions of dollars in climate finance while contributing to the country’s commitments under global climate agreements.
To strengthen project implementation, international partners proposed a joint training and pilot programme involving Niger State, the National Council on Climate Change, ICA Finance and other stakeholders. The initiative is expected to build technical expertise, improve institutional capacity and create a framework for developing bankable carbon projects.
Governor Bago expressed confidence that early action by Niger State could position it as a pioneer in Nigeria’s emerging carbon economy. According to him, successful implementation of methane reduction and waste-to-energy projects in the state could provide a practical model for other states seeking to benefit from international carbon markets.
He maintained that embracing carbon trading represents not only an environmental necessity but also an economic opportunity capable of generating jobs, attracting foreign investment and supporting sustainable development. The governor added that with adequate policy support and strong partnerships, Nigeria can leverage carbon finance to diversify its economy while contributing to global efforts aimed at combating climate change.
