Why Nigeria Must Embrace Carbon Capture Now

Nigeria confronts the dual pressures of decarbonizing its economy and preserving its industrial strength, one solution remains underexplored yet highly promising: Carbon Capture, Utilization, and Storage (CCUS). With global momentum building behind CCUS as a critical pathway for mitigating climate change, Nigeria stands at a pivotal crossroads. It can either lead in this space or risk falling behind—environmentally, economically, and geopolitically.

CCUS refers to the process of capturing carbon dioxide (CO₂) emissions from industrial facilities such as power plants, cement factories, and oil refineries, then either reusing the CO₂ in commercial processes or storing it permanently underground. This technology is already being deployed in countries like the United States, Canada, and Australia, where it is helping decarbonize sectors that are particularly hard to abate.

Nigeria, as Africa’s leading oil and gas producer, finds itself in a unique position. The country has committed to achieving net-zero emissions by 2060 and reducing greenhouse gas emissions by 20 percent unconditionally—or 47 percent with international support—by 2030 under its updated Nationally Determined Contributions (NDCs). Yet emissions from gas flaring, refining, and heavy industry remain high, and progress toward those targets is slow. According to the International Finance Corporation (IFC), Nigeria emits approximately 28 megatonnes of CO₂ from point sources annually, with emissions projected to increase by up to five percent each year.

This is where CCUS becomes critical. A 2022 Carbon Storage Atlas commissioned by the IFC and the Nigerian government reveals that Nigeria has a vast natural advantage: geological formations capable of storing an estimated 10,700 gigatonnes of CO₂. These include depleted oil and gas reservoirs and deep saline aquifers—particularly in the Niger Delta—making the region an ideal starting point for CCUS deployment.

Importantly, CCUS can be linked to enhanced oil recovery (EOR), where captured CO₂ is injected into mature oil fields to extract more oil while simultaneously storing carbon underground. This means Nigeria could reduce emissions and extend the economic life of its oil assets—a compelling dual benefit.

Yet despite this promise, Nigeria has yet to fully embrace CCUS. There is no comprehensive legal or regulatory framework to govern carbon capture projects, and existing infrastructure for CO₂ transport and storage remains limited. Investment incentives are lacking, and the technical expertise necessary to scale these projects is still developing.

Some progress has been made. In February 2022, the IFC announced a new partnership with Nigeria to accelerate CCUS adoption as part of the country’s broader energy transition strategy. At the launch event, Vivek Pathak, IFC’s Global Head for Climate Change, noted, “If we can combine carbon capture with a decisive push on renewables, countries like Nigeria could be poised for a real breakthrough.” This collaboration includes building stakeholder awareness, identifying CO₂ sources and sinks, and developing a clear roadmap for CCUS integration.

Additionally, the Office of the Vice President and the Federal Ministry of Environment are working with international development partners to prepare Nigeria’s first round of pilot CCUS projects. The Niger Delta, where industrial CO₂ sources are highly concentrated, is expected to host these early developments, taking advantage of existing oil and gas infrastructure and geological storage formations.

To move forward decisively, Nigeria must embed CCUS into its national climate and energy strategy. This includes clarifying CO₂ storage rights, establishing safety and liability standards, and providing fiscal incentives to attract private investment. International best practices—such as those from the U.S. 45Q tax credit model—could be adapted to fit the local context. Engaging the private sector early is essential, not only for financing but for long-term operational success.

At the same time, Nigeria should focus on developing a skilled workforce capable of operating and managing CCUS systems. Universities, research institutions, and technical training centers can play a vital role in building this capacity. This effort must also be accompanied by public awareness campaigns that highlight the safety, economic potential, and environmental importance of CCUS technologies.

Positioning Nigeria as a regional hub for CCUS could have far-reaching benefits. As more African nations adopt net-zero targets, Nigeria—armed with the largest storage capacity on the continent—could export not just oil and gas, but climate solutions and technical expertise. The country has the opportunity to lead, setting a standard for how developing economies can responsibly manage emissions while still pursuing industrial development.

The road to net-zero will be long and complex, but Nigeria already possesses many of the pieces required for progress. What remains is the political will to act decisively. CCUS is not a silver bullet, but it is an indispensable part of the solution—especially for a nation whose economy is still rooted in carbon-intensive industries.

The infrastructure, geological formations, and international partnerships are already taking shape. With a clear regulatory framework and targeted investment, CCUS can become a cornerstone of Nigeria’s energy transition. The future will belong to countries that can align economic growth with environmental responsibility. Nigeria has the tools—and the responsibility—to be one of them.

The time to act is now.

Kolapo is a chemical engineer and energy consultant with varied experience in Africa’s gas and power sectors.

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