Carbon markets are increasingly positioned at the centre of Nigeria’s energy transition strategy, particularly for the oil and gas sector as it navigates global decarbonisation pressures and evolving regulatory frameworks. As market mechanisms mature, carbon credits and related instruments are emerging as potential tools for mitigating emissions, attracting climate finance, and sustaining value creation across the hydrocarbons value chain.

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This article examines the legal and commercial framework for carbon market participation in Nigeria, outlines key regulatory and policy developments, and highlights practical opportunities and risks for industry stakeholders seeking to integrate carbon strategies into their transition pathways.