On Tuesday, 25th November 2025, the SITEI 2025 Conference convened under the banner “From Emissions to Assets: Carbon Accounting, Trading and Offsetting in Africa’s Extractive Sector.” The gathering brought together policymakers, industry leaders, climate finance experts, community stakeholders and civil society voices from across Nigeria, Africa and beyond. The core message was simple yet powerful: what was long treated as a burden (greenhouse-gas emissions) can become a source of economic value and income for countries, companies, and communities.
In 2025, the Nigeria Carbon Market Activation Policy (NC-MAP) was finalised, creating a formal regulatory basis for carbon markets in Nigeria, including carbon-credit generation, trading, and verification. The policy aims to unlock between US$2.5 billion and US$3.0 billion in climate‑finance flows over the coming decade.
At the same time, interest in African carbon markets is rising sharply. Under the African Carbon Markets Initiative (ACMI), it is projected that Africa as a whole has the potential to produce up to 300 million carbon credits annually by 2030.
For a continent long viewed mainly as an emissions “source” rather than a carbon asset, that is an important shift.
Speakers at the conference emphasised that emissions particularly from fossil‑fuel extraction, flaring and inefficient energy use, represent a new asset class that, if properly measured, verified and converted into carbon credits.
- In Session 1, Femi Oye highlighted how clean‑cooking initiatives (switching from firewood or kerosene to LPG or efficient stoves) can generate high‑integrity carbon credits. He pointed out that dependency on traditional fuel sources has caused widespread indoor air pollution and health risks, while releasing methane and CO₂ unnecessarily.
- In Session 2, Esther Essien emphasised methane capture, flare‑gas reduction, renewable energy integration and nature‑based solutions (NBS) as core pathways through which extractive companies can unlock value — not just environmental benefit but also financial returns.
Challenges That Must Be Addressed
The conference did not shy away from tough realities. Some of the major obstacles identified:
- Weak or fragmented Measurement, Reporting and Verification (MRV) systems across much of Africa’s extractive sector, undermining the credibility of carbon credits.
- Environmental degradation, ongoing gas flaring, and energy insecurity continue to harm local communities.
- Fragmented regulatory and institutional coordination makes it difficult to channel carbon‑market gains into sustainable social development.
- Low awareness of carbon markets among host communities and local actors, including limited representation of women and marginalised groups in project governance.
Where Africa (and Nigeria) Can Go From Here
The path ahead demands more than ambition. It requires concrete action on several fronts.
- Strengthen MRV and carbon‑market infrastructure. The new policy framework in Nigeria is just a start. It must be matched with transparent registries, independent auditing, and robust governance mechanisms to ensure that carbon credits are credible and deliver real emissions reductions.
- Focus on methane and flare‑gas abatement — and clean cooking. These represent some of the most scalable, socially beneficial, and high‑value opportunities. For instance, reducing flare gas and capturing methane not only lowers greenhouse gas output, it conserves resources and can contribute to energy security.
- Anchor carbon‑market gains in community benefit. Carbon credits should not be a windfall for companies alone. Projects must embed social‑licence and benefit‑sharing practices so that local communities — often bearing the brunt of extraction — see real gains: jobs, cleaner air, better energy access, restored ecosystems.
- Promote inclusion and equity in project design. That means meaningful participation of women, vulnerable groups and host communities in governance, decision‑making and benefit distribution.
- Use carbon markets to accelerate a just energy transition. Carbon finance should support renewable energy, clean cooking, ecosystem restoration and sustainable livelihoods — not merely offset business‑as‑usual extraction.
What It Means for Extractive Industries, Investors and Policymakers
If implemented well, carbon accounting and trading could transform the business model of extractive companies in Africa. Emissions — once treated as a cost and liability — could become assets generating additional income streams.
For investors, this opens a new frontier in climate-smart investment: credits from methane capture, clean cooking, renewables, nature‑based projects — all backed by verification and demand from global buyers under frameworks such as those implied by the Paris Agreement.
For governments, carbon markets present an opportunity to meet NDC (Nationally Determined Contribution) targets, earn foreign exchange, create green jobs, and channel funding into sustainable development.
For communities, there is the possibility of cleaner air, better energy access, new livelihoods, and a seat at the table in shaping how carbon‑finance proceeds are used.
SITEI 2025 sent a clear message: carbon in Africa needs to be seen not merely as a burden, but as a crucial asset. Turning emissions into tradable, verifiable credits is not easy. It demands commitment, transparency, inclusion and courage.
If you missed the live conference, you can watch the full sessions on YouTube.
The journey ahead is challenging but the potential benefits, for Nigeria, for Africa, for communities and for the planet, are immense.