Exploring voluntary carbon markets as a tool for sustainable agriculture in Nigeria: Opportunities and challenges

Voluntary carbon markets (VCMs) emerge as a strategic opportunity to encourage greenhouse gas (GHG) reductions and enhance environmental stewardship in Nigeria’s agricultural sector. However, the Nigerian agricultural industry has not been recognized as a potential market participant. This study assesses the potential of VCMs as a means for farmers, especially smallholder farmers, to participate in climate action while recognizing the challenges they encounter as market participants. This study identifies the benefits and limitations of VCMs by combining literature reviews, case studies, and causality analyses. The findings suggest that VCMs can offer substantial financial incentives, improve market access, and strengthen climate resilience for farmers. Nevertheless, their effectiveness may be hindered by limited knowledge, insufficient technical capacity, and regulatory uncertainty. The causality analyses further highlight a concerning trend: rising temperatures correlate with a significant increase in nitrous oxide (N 2 O) emissions, indicating that climate change directly affects agricultural emissions. This presents an opportunity for climate-smart farming practices to generate carbon credits for farmers. In conclusion, this study emphasizes the importance of maximizing the benefits of VCMs for Nigeria’s agricultural sector through a coordinated strategy that fosters economic growth, social welfare, and environmental sustainability.