A Non-Governmental Organisation, Vectar Energy, has called on the Federal Government to explore the use of carbon credits as a sustainable financing mechanism to bridge Nigeria’s $40 billion renewable energy funding gap.
The organisation made this call at the maiden EcoWise Multi-Stakeholder Forum held in Abuja, themed “Trust, Scale, Impact: Unlocking Climate Finance through Carbon Credits for Solar in Nigeria.”
Speaking at the event, Founder of Vectar Energy, Deborah Fadeyi, said Nigeria must shift from dependence on foreign aid to a trade-based approach by leveraging carbon credits to fund low-carbon energy projects. “Access to electricity has become a burden, with over 8.6 million Nigerians still lacking power,” Fadeyi said. “Aid alone cannot build climate resilience. We must explore carbon trading mechanisms that reward renewable energy projects with financial value.”
She explained that the Clean Development Mechanism (CDM)—a global framework under the Kyoto Protocol—could help Nigeria convert solar and other green energy data into tradeable carbon credits. These credits, she noted, could then be sold to multinational corporations such as Amazon and Microsoft, which are investing in carbon offsets to meet global net-zero targets by 2050.
Nigeria launched its Carbon Market Activation Plan (CMAP) in February 2024 and followed with the Nigeria Carbon Market Activation Policy (NCMAP) in September 2024. The initiative, supported by an inter-ministerial committee inaugurated by Vice President Kashim Shettima, aims to unlock an estimated $2.5 billion carbon market by 2030.
The policy seeks to standardise Nigeria’s carbon market ecosystem, promote international carbon trading under the Paris Agreement, and accelerate green growth across key sectors, including renewable energy.
In his remarks, the Ambassador of Israel to Nigeria, Michael Freeman, represented by Thelma Agada, B-Technology Project Manager, commended Vectar Energy for championing innovative climate finance solutions.
Freeman emphasised that Nigeria possesses the necessary conditions to lead Africa’s clean energy transformation—vast solar resources, abundant natural assets, and a youthful, innovative population. “The challenge and the opportunity lie in connecting innovation to implementation and ideas to investment,” he said. “Israel stands ready to partner with Nigeria through technology transfer, capacity building, and joint ventures in renewable energy infrastructure.”
Also speaking, Vice President of the Renewable Energy Association of Nigeria (REAN), Damilola Asaleye, lauded the launch of the EcoWise platform, describing it as a homegrown innovation that could help Africa access global climate finance. “Through EcoWise, we can convert data from solar installations into revenue via carbon credits,” Asaleye noted. “The private sector must take initiative and ensure credibility in data collection and management to attract investment.”
The event featured the unveiling of the EcoWise technical paper, along with virtual presentations on “Nigeria’s Solar Ambition,” “Empowering People for Climate-Resilient Energy Access,” and “Financing the Solar Transition.”
Vectar Energy’s initiative underscores a growing recognition that carbon credits could become a viable tool for financing Nigeria’s clean energy transition—moving the country closer to its climate resilience and net-zero ambitions.
