Low-emission farming to unlock climate finance

Nigeria’s drive to cut short-lived climate pollutants (SLCPs) from agricultural activities is gaining traction as a potential gateway for climate finance and carbon market investment, the Federal Government has said.

This was disclosed at the close-out workshop of the Abatement of Short-Lived Climate Pollutants in the Nigerian Agricultural Sector Project held in Abuja.

Speaking, the Permanent Secretary of the Federal Ministry of Agriculture and Food Security, Dr. Marcus Ogunbiyi, said the initiative has shown how climate-smart agricultural practices can open new funding opportunities for farmers while advancing Nigeria’s climate obligations.

The project, implemented by Self Help Africa in partnership with the Ministry and funded by the Climate and Clean Air Coalition, targeted reductions in methane and black carbon emissions by promoting alternatives to open-field burning across Nigeria’s six geopolitical zones.

Ogunbiyi explained that although the project benefited from international grant support, its long-term value lies in its ability to deliver measurable, bankable climate outcomes capable of attracting private sector and blended financing.

“Reducing methane and black carbon delivers fast climate benefits, and these are exactly the kinds of outcomes global climate finance and carbon markets are increasingly looking to support,” he said.

He noted that emission reductions achieved through practices such as water-efficient rice cultivation, sustainable management of crop residues and conservation agriculture could be packaged into carbon credit schemes, providing additional income streams for farmers and cooperatives.

According to the Ministry, the project has demonstrated that smallholder farmers can effectively participate in carbon markets when mitigation measures are practical, verifiable and tied to productivity improvements.

In more than 20 demonstration plots across 15 communities—particularly in Gboko Local Government Area of Benue State—farmers adopted no-burn farming methods, climate-resilient cropping systems and residue-to-briquette technologies. These approaches not only cut emissions but also improved crop yields and reduced household energy costs.

“These results position Nigerian agriculture as a credible candidate for results-based climate finance, where farmers are rewarded not just for producing food, but for delivering climate services,” Ogunbiyi said.

The SLCP Abatement Project aligns with the Climate Change Act of 2021 and Nigeria’s updated Nationally Determined Contributions (NDCs), which recognise agriculture as a key sector for both mitigation and adaptation efforts.

Also speaking at the workshop, the Director of Agricultural Land and Climate Change Management Services (ALCCMS) said embedding SLCP mitigation into agricultural policy would enhance Nigeria’s access to global climate funds, voluntary carbon markets and emerging methane-reduction financing mechanisms.

“Climate-smart agriculture is no longer just an environmental agenda; it is an investment opportunity,” the ALCCMS Director said.

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The Federal Government used the occasion to urge financial institutions to design tailored credit products for farmers adopting low-emission practices, while calling on development partners to support longer-term, results-based financing models that connect emission reductions with rural income growth.

Ogunbiyi stressed that expanding the gains recorded under the project would require strong coordination among agricultural, environmental and financial institutions, alongside improvements in rural infrastructure and extension services.

“As we conclude this project phase, the task before us is to convert pilot success into sustainable finance pipelines. With the right climate finance structures, Nigerian farmers can become active players in carbon markets while strengthening food security and rural livelihoods,” he said.