Nigeria Eyes $5bn Yearly Carbon Credit Revenue from 80m Clean Cookstoves Project
SAMUEL MOBOLAJI
The Federal Government of Nigeria, FGN, has projected annual earnings of up to $5 billion from carbon credit revenues under the 80 million clean cookstoves initiative being implemented by GreenPlinth Africa Limited. The projection was disclosed at a media parley and stakeholders engagement organised by GreenPlinth Africa in Lagos.
The nationwide project will begin full-scale implementation in Lagos, Niger, Enugu, Nasarawa, Benue, Kebbi, Borno and Delta States, with plans to expand to all states of the federation. Group Chief Financial Officer of GreenPlinth Africa Limited, Babatunde Aina, described the initiative as one of Africa’s most ambitious climate, economic and social interventions.
The engagement also served as a pre-conference briefing for the Green Conference and 2026 Projects Implementation Retreat scheduled for March 3 to 5 in Lagos. Aina said the project is designed to reposition Nigeria in the global carbon market, noting that when fully deployed, it would enable the country earn up to $5 billion annually from verified carbon credits.
He said benefits would extend beyond the federal government to states, local governments, host communities and participating households through structured carbon revenue sharing. According to him, the initiative represents climate finance driven from the grassroots, funded through carbon credits generated from verifiable reductions in greenhouse gas emissions.
Aina noted that although the global carbon market is valued at about $7.6 trillion annually, Africa currently receives less than two per cent of the value. He said Nigeria’s long dependence on firewood has contributed to the loss of over 95 per cent of forest stock, worsening deforestation, desertification, health challenges and poverty.
The project aims to transform cooking practices for over 80 million Nigerians, mainly women and children. Each participating household will receive a clean cookstove with two 15-litre cooking pots at no cost. The stoves will be fitted with digital metering and GPS tracking to monitor usage and emissions avoided. Beneficiaries will also receive N10,000 monthly support under the Paid to Cook initiative and free monthly delivery of 40kg biomass briquettes.
Aina said the project would operate in the compliance carbon market, which is regulated and currently valued at about $104 per metric tonne, unlike the lower priced voluntary market. Former Deputy Governor of the Central Bank of Nigeria, Tunde Lemo, described the initiative as a national awakening and a major shift in environmental consciousness.
He said the project could eliminate about 1.2 billion metric tonnes of carbon dioxide annually when fully implemented, making it the largest clean cooking and household energy transition initiative globally. Lemo added that the project is registered on the UNFCCC Global Climate Action Portal and that firewood sellers would be retrained and integrated into the clean energy value chain as briquette distributors.
Chairman of the Lagos State House of Assembly Committee on Environment, Adebola Shabi, said the state legislature has continued to enact laws aimed at reducing emissions and promoting a circular economy. Managing Director of LAPO Microfinance Bank, Cynthia Ikponmwosa, said the bank would support distribution nationwide, reaffirming its commitment to climate-smart initiatives.
