FG Sets To Unveil Carbon Tax System For Enhanced Revenue Generation

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Dahiru: Towards a resolution of Nigeria's climate concerns, By ...NCCC Director-General Salisu Dahiru.

The Federal Government has concluded plans to unveil a carbon tax policy and budgetary system to enhance revenue generation in the country, according to the Director-General of the National Council on Climate Change (NCCC), Dr. Salisu Dahiru.

Briefing State House correspondents on Monday in Abuja, Nigeria’s Federal Capital Territory (FCT), Dahiru said that the carbon tax policy is in line with the recently approved Energy Transition Plan, as part of the Climate Change Act.

It would be recalled that President Muhammadu Buhari had approved the Energy Transition Plan, to be driven by the NCCC, in accordance with the Climate Change Act 2021.

The NCCC, according to the Director-General, had obtained approval to initiate key deliverables contained in the Climate Change Act, including establishing a carbon budget for the country.

“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 reduction is normally contained in what we call a emissions reduction certificate, which can be translated into carbon credit, and then sold to potential buyers within the country and outside,” Dahiru said.

He disclosed that the Council also instructed the Secretariat to develop the frameworks, respectively, for carbon trading and for establishing the climate change fund for Nigeria.

According to the NCCC boss, this would serve as the main source of revenue and inflow of funds to be used for running of the Council.

He said that the funds would also be used to undertake projects to help Nigeria fulfill all its obligations under the nationally determined contributions, as well as under the net zero target of 2016.

“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,” Dahiru added.

On gas flaring, he said that part of the Council’s mandate is the implementation of the Energy Transition Plan.

Dahiru said: “This Energy Transition Plan, which is the first among many African countries, is predicated on the use of natural gas as the transition foil for Nigeria as the transition energy source.

“We know that what has been flared, is actually natural gas.

“So, we also know that one of the added advantages that the Energy Transition Plan is going to have is to help to close the energy or power or electricity gap that we are experiencing in the country.

“We are going to use the Energy Transition Plan as the main launchpad for capturing the gas needed.

“If you take the population of Nigeria, which is over 200 million, and we are already experiencing shortages in terms of electricity, and utilising this gas for even domestic use alone is something that is going to be a big positive.

“So, the government is pursuing the implementation of this ETP as a very important project that will have multiple benefits, including reducing the energy gap.”

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