Lagos State, Nigeria, has unveiled Africa’s first subnational carbon exchange as part of a bold climate finance programme expected to generate over $1 billion in revenue from certified carbon credits over the next 15 years.

The new platform, known as the Lagos Carbon Exchange (LCX), was officially launched on Thursday during the presentation of the “80 Million Credit Float Project” at the Bagauda Kaltho Press Centre, Alausa. 

The initiative is designed to help Lagos monetise its emissions reduction efforts by trading 1.2 million certified carbon credits, with proceeds reinvested in clean energy, healthcare, transportation, and climate resilience programmes.

The Special Adviser led the launch to the Governor on Climate Change and Circular Economy, who described the LCX as a game-changing tool for unlocking climate-related investments at the state level.

Developed in collaboration with GreenPlinth Africa, the LCX is a core component of the broader Credit Float Project, which aims to issue 80 million eco-loans and create up to 35 million green jobs across Nigeria. The project aligns with the Lagos State Government’s THEMES Plus Agenda, which prioritises inclusive growth and sustainable development.

Speaking at the event, the Lagos State Commissioner for Economic Planning and Budget noted that the project would serve as an economic and public health catalyst by reducing indoor air pollution and promoting cleaner alternatives. We expect significant health benefits, especially for women and children.

As part of the initiative, Lagos will begin distributing six million free clean cookstoves starting this month in the Makoko area, one of the state’s most vulnerable communities. The state will also launch a “Pay-to-Cook” scheme, offering N10,000 annually to households that switch from firewood and kerosene to cleaner cooking technologies.

Additionally, households that adopt clean energy practices will be eligible for free health insurance, while small businesses will receive support to transition to renewable energy. Free food stores will also be established in underserved areas as part of a broader welfare programme.

To further localise climate action, the state government announced that each of Lagos’ 57 local councils will receive N1 billion annually to fund green development projects. Councils are expected to implement at least five sustainable projects per year, targeting 1,000 communities.

The state also plans to plant 400 million economic trees to combat deforestation, improve biodiversity, and enhance food security through agroforestry.

The project is being overseen by a high-level advisory board chaired by the Governor of Lagos State, with the Niger State Governor serving as deputy chairman. The board includes representatives from Nigeria’s six geopolitical zones, the private sector, civil society organisations, and development partners.