In a recent session, the House of Representatives in Nigeria urged the federal government to harness the significant climate investment funds, which are currently estimated to be around $23 billion. This call to action followed a motion presented by Hon. Daniel Amos during yesterday’s plenary session.

Amos highlighted that, according to the African Carbon Market Initiative, Nigeria has the potential to generate over $500 million annually by 2030 while simultaneously creating more than three million jobs through efforts to reduce carbon emissions. He reminded attendees that Nigeria is a signatory to the 2015 UN Climate Change Conference (COP21), having ratified the Paris Agreement in 2017 and established its Nationally Determined Contributions (NDCs). Notably, the country committed to achieving net-zero emissions by 2060, a commitment solidified with the enactment of the Climate Change Act in 2021.

Amos made a compelling case for investing in sustainable green projects, arguing that such investments would not only create jobs and foster innovation but also drive Nigeria’s economic development. He noted that the total resources pledged to major climate advocacy organizations, including the Green Climate Fund and the Global Environment Facility, are projected to reach $23 billion by 2024. This figure excludes other potential funding sources like bilateral and multilateral aid, private sector investments, and domestic resources.

The significance of carbon credits, which represent the removal of one metric ton of carbon dioxide (CO2) or other greenhouse gas emissions from the atmosphere, was also emphasized by Amos. He pointed out that as of 2022, the global voluntary carbon market was valued at approximately $2 billion, with projections indicating it could grow by at least 15 times by 2030, as governments and corporations aim to meet net-zero emissions targets.

In response to these insights, the House called on the National Climate Council to require all Ministries, Departments, Agencies, and Companies to develop and implement effective sustainability plans. They also recommended establishing a dedicated annual budget for green funds sourced from development partners and multilateral agencies, earmarking these funds for relevant entities.

Additionally, the committees on Climate Change, Renewable Energy, Environment, and the Ecological Fund have been tasked with collaborating with the Executive branch to promote sustainable practices among citizens, businesses, and government agencies during project planning and execution. The Committee on Appropriation is instructed to work closely with the Ministry of Budget and Planning to create incentives for those agencies adopting sustainable practices, ensuring that entities with carbon credit potential receive increased funding beyond their initial budgets starting in the 2025 estimates. These programs must be conceptualized and submitted to the Federal Executive Council (FEC) for approval.