Nigeria's Carbon Tax Framework: What Industrial Emitters Need to Know

Nigeria's Climate Change Act of 2021 established a legal framework for a national carbon pricing mechanism. In 2025, the National Council on Climate Change (NCCC) released draft regulations outlining a carbon tax starting at ₦1,500 per ton of CO₂e, phased in from 2027.

Who will pay?

Initial coverage includes cement, steel, petrochemicals, and large-scale manufacturing facilities emitting over 10,000 tons annually. Revenue from the tax will fund Nigeria's renewable energy transition and adaptation projects.

Preparing for compliance

Unlike the voluntary carbon market, Nigeria's tax will require verified emissions data using IPCC Tier 2 or Tier 3 methods. CarbonScope360 already includes NESREA-aligned reporting templates and automated calculation for Nigerian industrial sources.

Opportunity for early movers: Manufacturers that reduce emissions before the tax takes effect can qualify for tax credits and potentially sell surplus reductions into regional carbon markets.

Avalanche Consulting is actively working with the NCCC and major Nigerian industrial groups to pilot CarbonScope360 in advance of the regulation.