Nigeria's federal government and climate stakeholders are pushing regulatory reforms to integrate carbon markets into the country's financial system. The PRISM Nigeria initiative, led by the Clean Cooking Alliance and partners, aims to make carbon credits recognized as investable assets. This would allow local capital to flow into clean cooking, renewable energy, and nature-based projects without waiting years for international validation. The workshop in Abuja identified 15 priority regulatory interventions targeting the Central Bank of Nigeria, Securities and Exchange Commission, and other financial regulators. Key proposals include developing carbon credit linked bond instruments, creating incentives for loans that support carbon credit projects, and integrating carbon credit data into climate risk databases. The government has already issued 25 Letters of Authorisation since May to enable monetisation of carbon assets. A major takeaway is the emphasis on domestic finance over international funding. Officials argue that relying on local capital speeds up project timelines and gives Nigeria more control over its climate strategy. The success of these reforms will depend on credible monitoring, reporting, and verification systems to maintain investor confidence in Nigerian carbon credits.
