FG to earn $5bn annually from verified carbon credit revenues – GreenPlinth

L-R: Group Chief Marketing Officer, GREENPLINTH Africa Limited, Chief Godwin Njoku; Co-Founder, Vice President & Group Managing Director, GREENPLINTH Africa Limited, Victor Ayodeji Fodeke; Special Adviser on Environment to the Lagos State Governor, Olakunle Rotimi-Akodu; Group Chief Financial Officer, GREENPLINTH Africa Limited, Engr. Babatunde Aina; Lagos State Coordinator, GREENPLINTH Africa Limited, Alhaji Sheriff Danmole; during the GREENPLINTH Africa Limited Media Chat and Stakeholders’ Engagement ahead of the flag-off of the distribution of 80 million clean cookstoves and a four-billion innovative tree-planting programme in Nigeria, held in Lagos, on Thursday.

The management of GreenPlinth Africa Limited has projected that the Federal Government of Nigeria (FG) could earn an estimated $5 billion annually from verified carbon credit revenue through its ‘80 Million Clean Cookstoves Project’ when fully deployed in Nigeria.

Beyond the federal government, states, local governments, host communities, and participating households will also benefit through transparent and structured carbon-revenue-sharing mechanisms.

Currently, the global carbon market is valued at approximately $7.6 trillion annually, while Africa has historically received less than two percent of the global carbon credit. Carbon credits are payments made to entities (government and private) that verifiably reduce greenhouse gas emissions.

“Carbon is both an asset and a commodity, much like gold, crude oil, or copper – Carbon is the new global currency,” Victor Fadeke, vice president and GMD, GreenPlinth Africa Limited, said during a recent media chat and stakeholders’ engagement in Lagos.

According to him, the engagement was held toward the flag off of the distribution of the 80 million clean cookstoves and four billion innovative tree planting programme in Nigeria.

He added that the clean cookstoves project supports Nigeria’s Nationally Determined Contributions (NDCs), and that the tested pilot metered clean cookstoves is currently fully operational in Lagos.

According to him, GreenPlinth Africa distributed cookstoves, briquettes, and a N10,000 monthly stipends to beneficiary households in Makoko, one of the riverine communities in Lagos.

Fadeke disclosed that the initiative is the first metered improved cookstove (ICS) project in the world, powered by non-charcoal biomass briquettes made from agricultural waste and factory biomass produce that are circular economy driven. “Nationwide job creation at a minimum wage of about 165 percent above the approved national minimum wage in Nigeria.”

Rotimi Akodu, special adviser to the Lagos State governor on environment, in a goodwill message said the state government is ready to partner with any organisation working to reduce carbon emission in the state.

Babatunde Aina, group chief financial officer, GreenPlinth Africa limited, said many households across Nigeria spend an average of between 30 percent and 40 percent of their weekly income on firewood to prepare meals.

“For decades, Nigeria’s reliance on traditional firewood has resulted in the loss of over 95 percent of our forest stock, accelerating deforestation and desertification; health crises, and entrenched poverty,” Aina said.

He added that at the heart of the 80 million cookstoves initiative is a bold commitment to transform how over 80 million Nigerians, primarily women and children, cook their everyday meals. “This project is designed to permanently change these realities.”

According to him, each participating household will receive a comprehensive clean-cooking solution package at no cost, including a highly efficient, thermally optimized clean cookstove, supplied with two 15-litre cooking pots.

The primary carbon market is classified into two; the voluntary market, which requires limited documentation and offers low prices (about $2 to $5 per metric tonne), and the compliance market, which is rigorous, regulated, and currently valued at approximately $104 per metric tonne.

According to Aina, the clean cookstoves come with digital metering and GPS tracking devices, to help capture cooking activities, real-time CO₂ emissions avoided, and 24/7 online monitoring. “A stove that requires substantial heating only once – retaining heat for four to five hours thereafter. One briquette capable of sustaining cooking for up to five hours.”

Beyond the monthly N10, 000 household support that will be paid to beneficiary households under the ‘Paid-to-Cook initiative’, to provide direct financial relief, Aina added that beneficiaries will also enjoy free monthly delivery of 40kg of biomass briquettes, supplied directly to the household.

The initiative also includes a comprehensive health insurance, covering up to eight household members, which Aina said is geared towards addressing severe health impacts of pre-project indoor air pollution and eliminating subsequent out-of-pocket medical expenses for beneficiaries. “This is not charity. It is climate justice delivered with dignity,” he said.

Seyi John Salau is a BusinessDay Correspondent with interest in development journalism, which tells stories that connect the people, brands, and the government. SeyiJohn is also a media professional with BSc, Mass Communition (ACU); Masters of School Media (MSM, Ibadan) & MSc, Mass Communication (Caleb).

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