The Minister of Environment, Balarabe Abbas Lawal said Nigeria has the potential to generate millions of tons of carbon credits annually by 2030 through projects like reforestation, renewable energy, and waste-to-energy initiatives.
The Minister said this while declaring a workshop open at the NAF Conference Centre Thursday in Abuja.
The minister, who was represented by Permanent Secretary in the ministry, Alh Mahmud Adam Kambari, added that the National Council on Climate Change (NCCC) convened a landmark of 2 day training workshop titled “Nigeria’s Carbon Market Activation Plan:
“Nigeria’s Article 6 Framework; & Implementation Design under the Paris Agreement” This intensive training, supported by the United Nations Development Programme (UNDP) and Neyen Consulting SL, marks a significant step towards operationalizing Article 6 of the Paris Agreement and establishing Nigeria as a leader in carbon market development.
Abbas highlighted the significance of carbon markets in achieving global climate goals and Nigeria’s ambitious Nationally Determined Contribution (NDC) targets.
According to Minister, hinges on international partnerships, capacity building, and targeted investments.
Nigeria’s growing commitment to emissions reduction was underscored by the Minister, citing the country’s updated NDC and participation in relevant climate initiatives.
Earlier in his remarks, the Director General of the NCCC, Dr. Salisu Dahiru, emphasized the strategic importance of Article 6 in achieving Nigeria’s ambitious Net Zero target by 2060.
“Market-based mechanisms, including a well-designed and implemented trading scheme, can be a powerful tool for reducing emissions,” he said.
Ends
Inflation has remained high since 2016. The removal of fuel subsidy and Naira devaluation led to a 25.0 per cent average inflation, with petrol prices rising by 210.3 per cent year-on-year (y-o-y), In November 2023, inflation rose to 28.2 per cent y-o-y. Food and core inflations rose to 31.5 per cent and 22.6 per cent y-o-y in October.
The MPC was hawkish raising the MPR by 725bps to 18.75 per cent and Open Market Operation )OMO) operations were reinstated. The latter part of 2023 saw an improved fiscal environment owing to reforms. Due to low oil production, anticipated rise in net oil revenues did not occur. Thus, expenditure pressure persisted in 2023.
Public finance remains a concern with a projected budget deficit of 5.0 per cent of GDP in 2023 and 4.7 per cent in 2024. Fuel subsidy and forex reforms overshadowed mitigating measures of $800 million World Bank loan which covered less than 10.0 per cent of subsidies. Short term advances were restructured into 40-year debt with 9.0 per cent. Thus, public debt surged with a projection of 39.0 per cent in 2023.
Notably, current account surplus surged to 1.1 per cent in 2023 owing to subsidy removal. However, reserves hovering around $33 billion amid low oil production contributed to a weak exchange rate. Since 2021, naira has devalued over 40.0 per cent, and persistent forex challenges have aided a widening gap between official and parallel exchange rates.
Money market saw excess liquidity of over N2.0 trillion. Shonubi introduced unorthodox methods, but Cardoso reinstated orthodox methods, and maintained an 18.75 per cent MPR threshold. The bonds market was bearish due to forex volatility and rising debts. in the second half of 2023 saw a 150bps MPR hike, driving yields upwards, but in H2 high yields were influenced by 65.0 per cent Loan to Deposit Rate (LDR) directive. Equities market was impressive as the ASI exceeded 66,371.2 points.
In 2024, Nigeria’s economic growth may uptick at 2.6 per cent, driven by an oil sector rebound and growth in non-oil sectors. The services, banking, and ICT sectors will record impressive growth. On the flip side, rising inflation, potential interest rate hikes, forex illiquidity, and naira depreciation may inhibit growth.
