Assessing Readiness for Inclusive and High-Integrity Carbon Market in Nigeria’s Agricultural Sector

Climate change is a global challenge, but for many developing nations, the solution lies in the soil. In countries like Nigeria, where the economy and daily life depend heavily on farming, the land itself holds a powerful tool for fighting warming: the ability of plants and soil to capture carbon dioxide from the air. This process, known as carbon sequestration, turns agricultural fields into natural sinks that can slow the rise of global temperatures. To make this happen on a large scale, a system has emerged where farmers are paid for the carbon their land stores. These payments come from "carbon credits," which are essentially certificates proving that a specific amount of pollution has been prevented or removed. For these credits to be valuable, they must be "high-integrity," meaning they are real, measurable, and permanent. If a farmer claims to have stored carbon but cannot prove it, or if the money meant for them disappears, the system loses its value and trust. The question facing Nigeria is whether its current rules, banks, and farming communities are ready to join this global market without losing their way.

A team of researchers from the Environmental and Economic Resource Centre in Nigeria set out to answer this question by taking a close look at the country's agricultural sector. They wanted to know if the systems in place could support a transparent and fair market where small-scale farmers, who make up the vast majority of the population, could participate. The researchers did not just guess; they spent time reviewing recent studies from 2021 to 2025 and speaking directly with twenty key people. These conversations included government officials, private companies trying to build these projects, and non-governmental organizations. They used a specific diagnostic tool designed to measure how ready a country is to launch such a market. This tool looked at five main areas: the laws and rules in place, how well different government groups work together, the availability of money to fund projects, the technology used to track carbon, and how well the system includes ordinary farmers.

The findings reveal a country that is eager but not yet fully ready. The researchers found that Nigeria has made a strong start on paper. The government has passed important laws, such as the Climate Change Act, which created a national council to oversee climate efforts and authorized the use of carbon markets. This legal foundation scored well, showing that the country has the right intentions and a clear vision. However, when the researchers looked at how these ideas work in the real world, the picture became more complicated. The overall readiness score for Nigeria came in at 55 percent. This number suggests the country is in a transitional phase, moving from having good ideas to having a working system, but it is not there yet. The most significant gap was found in finance, which scored only 33 percent. While there are some new funds and partnerships, there is no reliable way for small farmers to get the upfront money they need to change their farming practices, nor is there a safety net like insurance to protect them if a project fails.

Another major hurdle is the lack of a unified system to measure and verify carbon. To sell a carbon credit, a farmer must prove exactly how much carbon their land has stored. Currently, Nigeria does not have a single, national system for doing this. Instead, efforts are scattered, and the technology needed to track soil carbon accurately is still in its early stages. This makes it difficult to create credits that international buyers will trust. Furthermore, the researchers found that the rules about who owns the carbon are unclear. In many parts of Nigeria, land is held by communities rather than individuals, and the law does not clearly state who gets the money if that land stores carbon. Without clear answers, there is a risk that the benefits will go to powerful intermediaries rather than the farmers doing the work. This uncertainty also extends to how profits are shared, with no standard agreement on how to split the money between the farmer, the company managing the project, and the government.

Despite these challenges, the study highlights that the potential is real. The agricultural sector in Nigeria is already responsible for a significant portion of the country's greenhouse gas emissions, but it also offers unique opportunities to reduce them through better farming methods. Practices like planting trees among crops, improving soil health, and managing livestock more carefully can lower emissions while helping farmers grow more food. The researchers noted that some pilot projects are already showing promise, proving that it is possible to bring small farmers into the fold when the right support is in place. However, these successes remain isolated examples rather than a national standard. The current system is fragmented, with different government agencies working in silos and private developers facing uncertainty about how to proceed.

To move forward, the researchers argue that Nigeria needs to focus on turning its policy ambitions into practical action. This means creating a single, clear set of rules for measuring carbon that everyone can use, and clarifying the laws so that farmers know they will keep the rights to the carbon their land produces. It also requires building financial structures that can provide loans and insurance to smallholders, reducing the risk for both the farmers and the investors. The study suggests that by fixing these specific gaps, Nigeria can build a market that is not only profitable but also fair. The goal is to ensure that the money generated from selling carbon credits actually reaches the people who need it most, allowing them to invest in better farming techniques. If these steps are taken, the country could transform its agricultural sector into a powerful engine for climate action, proving that economic development and environmental protection can go hand in hand.