Executive summary

Nigeria is emerging as a promising jurisdiction for nature-based carbon projects, particularly blue carbon in mangrove areas. The country currently hosts four registered nature-based projects and formally recognizes two international crediting programs: Verra and Gold Standard.

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Nigeria has created a formal approval pathway for nature-based carbon credit projects, anchored in the Climate Change Act 2021. In practice, developers seeking to generate voluntary carbon credits must complete several approval steps before the project can go ahead. They must first obtain government recognition through a No-objection letter before registering the project under an international carbon standard. Depending on the project’s location and activities, they may also need to complete an Environmental Impact Assessment (EIA), obtain a Wetland Resource Use Permit for work in mangroves or other wetlands, and secure a Coastal and Marine Area Development Permit for activities in coastal areas. This framework strengthens environmental oversight and safeguards, but it also requires developers to deal with multiple regulators, which can lengthen approval timelines.

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The government also requires projects to be registered in a national carbon registry, which is still being developed, and obliges developers to show how affected communities will be consulted and how benefits will be shared. Nigeria has not adopted a single national formula for benefit-sharing. Instead, developers must propose arrangements that are fair and transparent, and regulators assess those proposals case by case as part of the project approval process.

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The State does not exclusively own mangrove forests. Under the Land Use Act, individuals, companies, and communities can hold statutory or customary rights of occupancy, allowing projects to operate on state-managed, private, or community-held land. But tenure is not uniform: some coastal mangrove areas also fall under federal control, and land and forestry rules vary by state. Project developers, therefore, need site-specific due diligence and early coordination with the relevant federal, state, local, and community authorities. Nigeria does not yet provide a standalone legal definition of carbon rights; in practice, developers secure rights through legal control over the underlying land or forest resource. The national climate change policy framework acknowledges this gap and signals the government's intention to address it in future rulemaking.

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Overall, Nigeria has favorable enabling conditions for blue carbon projects. The country already has market precedent, a formal carbon-market framework, and multiple tenure pathways for project development. However, project developers must navigate three key constraints:securing multiple permits across different agencies, and state-by-state land tenure complexity that requires location-specific due diligence. As a result, Nigeria represents a credible and promising market. Still, successful projects will require early engagement with government agencies, careful sequencing of permits, robust community agreements, and rigorous local due diligence.

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