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Fri, Mar

Climate Change: FG To Introduce Carbon Tax Policy

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In its bid to reduce carbon or greenhouse gas emissions and boost revenue generation, the Federal Government (FG) is set to launch a carbon tax policy and budgetary system. This was revealed on Monday to State House correspondents by the Director-General of the National Council on Climate Change (NCCC), Salisu Dahiru. A carbon tax is a fee required for the burning of carbon-based fuels (coal, oil, gas) because carbon-fuel users have to pay for damage caused to the climate as a result of carbon dioxide released into the atmosphere.


According to him, the carbon tax policy is in line with the Energy Transition Plan which was recently approved by President Muhammadu Buhari, which is in accordance with the Climate Change Act, 2021.

He said, “The carbon budget is now going to provide allowances for every entity, whether government or private sector, in terms of how much emissions it may be allowed, and exceeding those emissions could also attract penalties. These penalties are going to be contained in another deliverable that the Climate Change Act has also requested the Council to do.

“That is to develop a framework for a carbon tax system in Nigeria. It will also look at where projects are being implemented in the country.

“These projects are capable of reducing overall carbon or greenhouse gas emissions. The harvest of these emissions reductions are normally contained in what we call emissions reduction certificate, which can be translated into carbon credit, and then sold to potential buyers within the country and outside.”

Dahiru further stated that the Council also directed the Secretariat to develop the framework for carbon trading and also develop the framework for establishing the country’s climate change fund, which would serve as the main source of revenue and inflow of funds to be utilized for the running of the Council.

He added, “The President also endorsed the Council as the Designated National Authority for the United Nations Framework Convention on Climate Change (UNFCCC) and the DG, NCCC as the UNFCCC National Focal Point, in line with the Climate Change Act, 2021.”

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