Nigeria’s Lagos State plans to establish Africa’s first subnational carbon exchange, aiming to generate $1bn over 15 years through the trade of 1.2mn carbon credits, Nairametrics has reported.

The Lagos Carbon Exchange (LCX) was announced by Titi Oshodi, Special Adviser on Climate Change and Circular Economy. It forms a central component of the state’s newly launched 80 Million Credit Float Project, which is designed to finance climate initiatives and strengthen social infrastructure. Proceeds from carbon trading will be reinvested into clean energy, sustainable transport, healthcare, and climate-resilient projects.

The LCX is part of a broader partnership between Lagos State and GreenPlinth Africa, with plans to distribute 80mn eco-loans and create 35mn green jobs across Nigeria, according to Nairametrics. Lagos State Commissioner for Economic Planning and Budget, Ope George, said the initiative aligns with the THEMES Plus Agenda and is expected to reduce indoor air pollution, particularly benefiting women and children, while also fostering economic growth.

Implementation activities are scheduled to begin in June 2025, starting with the free distribution of 6mn clean cookstoves in the Makoko area. Under a Pay-to-Cook scheme, households adopting clean cooking solutions will receive NGN10,000 ($6.40) annually. Additional measures include free health insurance, renewable energy support for small businesses, and subsidised food stores for vulnerable populations.

Each of Lagos State’s 57 local councils will receive NGN1bn ($641,000) annually to fund green development initiatives. The programme will deliver five sustainable projects annually across 1,000 communities. In addition, 400mn economic trees will be planted to combat deforestation and strengthen food security.

The initiative will be overseen by a high-level advisory board chaired by Lagos State Governor Babajide Sanwo-Olu. Niger State Governor Mohammed Umar Bago will serve as deputy chair. The board will include representatives from Nigeria’s geopolitical zones, private sector stakeholders, non-governmental organisations, and development partners, according to Nairametrics.