FG Targets $5bn Annual Revenue from 80 Million Clean Cookstoves Carbon Initiative
FG to Earn $5bn Annually from 80 Million Clean Cookstoves Carbon Project
The Federal Government of Nigeria is projected to generate approximately $5 billion in annual revenue through carbon credits following the full implementation of the 80 Million Clean Cookstoves Project. This ambitious climate and economic intervention aims to distribute modern, efficient cooking solutions across the federation at no cost to households, positioning Nigeria as a significant player in the global compliance carbon market.
According to Babatunde Aina, Group Chief Financial Officer of GreenPlinth Africa Limited, the initiative is designed to drive environmental sustainability while unlocking substantial economic value. Speaking ahead of the Green Conference and 2026 Projects Implementation Retreat in Lagos, Aina noted that the project will utilize verified carbon credits to create a sustainable revenue stream for the federal, state, and local governments, as well as participating host communities.
Economic Impact and Carbon Market Integration
The project distinguishes itself by operating within the regulated compliance carbon market rather than the voluntary market. This strategic choice ensures higher valuation and long-term viability. "The compliance market is currently valued at about $104 per metric tonne," Aina stated, describing carbon as a "new global currency" that will underpin Nigeria’s fiscal diversification efforts.
Beyond direct revenue, the initiative includes a transparent carbon revenue-sharing mechanism. This framework ensures that the financial benefits of carbon sequestration and emission reduction reach the grassroots level, providing economic cushions for the households involved.
Technological Innovation and Public Health
The clean cookstoves are engineered for high thermal efficiency. Each unit is equipped with two 15-litre cooking pots, digital metering, and GPS tracking. These features allow for real-time monitoring of cooking activity and the precise calculation of carbon emissions avoided. The stoves are designed to retain heat for up to five hours after a single heating cycle, significantly reducing the reliance on traditional biomass fuels.
Tunde Lemo, former Deputy Governor of the Central Bank of Nigeria, characterized the project as the world’s largest household energy transition initiative. He highlighted its potential to remove an estimated 1.2 billion metric tonnes of carbon dioxide annually, providing a landmark public health intervention for over 80 million Nigerians, particularly women and children who are most vulnerable to indoor air pollution.
Social Inclusion and Implementation Strategy
To mitigate the impact on traditional energy vendors, the program includes a transition plan for firewood sellers. These individuals will be retrained and integrated into the clean energy value chain as distributors of briquettes, ensuring that livelihoods are preserved during the shift toward sustainable energy.
The implementation is set to commence across eight pilot states: Lagos, Niger, Enugu, Nasarawa, Benue, Kebbi, Borno, and Delta, before expanding nationwide. The project is officially registered on the United Nations Framework Convention on Climate Change (UNFCCC) Global Climate Action Portal, ensuring it meets international standards for transparency and accountability.
