Lagos To Launch Subnational Carbon Exchange, targets $1bn Revenue In 15 years

Lagos State is set to launch Africa’s first subnational carbon exchange, with an estimated $1 billion in revenue expected over the next 15 years from the generation and trading of 1.2 million carbon credits.

The announcement was made by Ms. Titi Oshodi, Special Adviser to Governor Babajide Sanwo-Olu on Climate Change and Circular Economy, during the launch of the “80 Million Credit Float Project” at the Bagauda Kaltho Press Centre, Alausa on Friday, June 6, 2025.

According to Oshodi, the planned Lagos Carbon Exchange (LCX) will enable the state to monetize emissions reductions through certified carbon credits.

Proceeds from these trades will be reinvested in clean energy, healthcare, green transportation, and climate-resilient social programmes.

In her opening address, Oshodi stated that the initiative would generate 1.2 million carbon credits, bringing in over $1 billion in revenue over 15 years to support infrastructure, social programmes and climate projects.

The carbon exchange is a key component of the state’s newly launched “80 Million Credit Float Project,” a large-scale climate finance and social intervention programme implemented in partnership with GreenPlinth Africa.

The initiative aims to distribute 80 million eco-loans and create 35 million green jobs across Nigeria.

The Lagos State Commissioner for Economic Planning and Budget, Ope George, said during the launch that the project aligns with Lagos’ THEMES Plus Agenda and demonstrates the state’s leadership in climate-smart development.

According to him, it will serve as an economic catalyst, especially by reducing indoor air pollution and improving public health outcomes, particularly for women and children.

As part of the programme’s rollout, Lagos will begin the free distribution of six million clean cookstoves in June 2025, starting in Makoko. The cookstove initiative is designed to expand access to clean cooking technologies and reduce dependence on firewood and kerosene.

The project also features a “Pay-to-Cook” scheme, which will provide households with N10,000 annually for adopting clean cooking practices.

Other components include free health insurance coverage for beneficiaries, renewable energy support for small businesses, and the establishment of free food stores to aid vulnerable communities.

In addition, the initiative will allocate N1 billion yearly to all 57 local councils in Lagos for green development, implement five sustainable projects each year across 1,000 communities, and plant 400 million economic trees to combat deforestation and food insecurity.

The initiative is overseen by a Project Advisory Board chaired by Governor Babajide Sanwo-Olu, with Governor Mohammed Umar Bago of Niger State as Deputy Chairman.

The board also includes representatives from Nigeria’s geopolitical zones, the private sector, NGOs, and development partners.