In accordance with the newly authorized Energy Transition Plan as part of the Climate Change Act, the federal government has finalized plans to announce a carbon price policy and budgetary system for Nigeria.
This was said over the weekend by Salisu Dahiru, the Director-General (DG) of the National Council on Climate Change (NCCC), who had just met with President Muhammadu Buhari at the Presidential Villa in Abuja.He said that the organization organized and won consent to start important tasks outlined in the Climate Change Act, such as creating a national carbon budget.
At a recent meeting in Abuja, the president had approved the Energy Transition Plan, which the NCCC would oversee in compliance with the Climate Change Act of 2021.An emissions tax, which is based on how much an entity generates, and a tax on products or services that are typically greenhouse gas-intensive, such a carbon tax on fuel, are the two main types of carbon taxes or taxes on greenhouse gases.
The federal government is anticipated to establish a price that polluters pay for each tonne of greenhouse gas emissions under the agreements.On the carbon tax system, Dahiru said: “That will now provide allowances for every organization, whether government or private sector, in terms of how much emissions it may be allowed, and exceeding those emissions could also carry fines.
According to the DG, the council also gave the secretariat instructions to create the framework for carbon trading and climate change fund for Nigeria to serve as the main source of revenue and inflow of funds that will be used for running of the council as well as to undertake projects that will help Nigeria to fulfill all his obligations under the nationally determined contributions, as well as under the net zero target of 2016
