Pioneering Nigeria’s Carbon Exchange: Nigeria Sovereign Investment Authority (NSIA) Leading Africa’s Market Transformation

Rising demand for high-quality carbon credits presents Nigeria with a chance to lead Africa  in climate finance innovation and the development of a credible, scalable carbon market. This Capstone project, developed in collaboration with the Nigeria Sovereign Investment Authority  (NSIA), is designed to enable Nigeria’s carbon policy framework and serve as a viable commercial  platform anchor for the country’s climate economy. The research is organized around three pillars. First, the team conducted global benchmarking  of carbon exchanges in China, Malaysia, Saudi Arabia and Singapore to identify best practices in governance, registry design, and digital monitoring systems. Based on these insights, the team recommended a stock-exchange-hosted model that leverages digital measurement, reporting, and  verification (MRV) and strong institutional partnerships. 

Second, the team assessed Nigeria’s supply and demand potential. With an estimated 8–18  MtCO₂e in annual carbon credit potential across sectors such as forestry, agriculture, and clean  cooking, Nigeria is well-positioned to attract voluntary buyers, sovereign demand under Article  6.2 of the Paris Agreement, and future compliance market participants. The team developed a financial  model which supported our hypothesis that in order for an exchange to be viable, there needs to  be high demand for carbon credits. Finally, the team proposed a three-phase implementation roadmap to bring this platform to life.  This strategy begins with foundational infrastructure development and stakeholder capacity  building, followed by the launch of a voluntary market platform, and culminates in readiness for  compliance integration and regional scaling.