Nigeria Takes Over Renewable Energy Certificate Issuance from UK Firm

• Lagos targets $14bn-$33bn power investment by 2030 

•Nigeria records 522 issuances since 2020, 236 in first 9 months of 2026

Emmanuel Addeh in Abuja

Nigeria has secured a foothold in the international renewable energy certificate market, following the accreditation of EF Market Solutions Nigeria Limited (EFMS) as the issuer of internationally recognised renewable energy certificates in Lagos State, replacing a United Kingdom-based company that previously handled the business in Nigeria.

The accreditation by the Netherlands-based I-TRACK Foundation makes EFMS the first and only Nigerian company authorised to issue International Renewable Energy Certificates (I-REC(E)) in the country, creating an opportunity for local renewable energy operators to earn additional revenue in foreign currency from the electricity they generate.

The development comes as Lagos State seeks between $14 billion and $33 billion in new power generation investment by 2030, while businesses and households continue to depend heavily on petrol and diesel generators to supplement inadequate electricity supply from the national grid.

Under the arrangement, EFMS will issue the certificates through the Lagos Carbon Initiative, an environmental market infrastructure and climate finance platform developed in partnership with the Lagos State Government, the company said in a statement.

The certificates represent one megawatt-hour of verified renewable electricity generation and can be purchased by companies seeking to substantiate claims about their use of clean energy and report indirect greenhouse gas emissions under international accounting standards.

The system allows owners of eligible solar installations and other renewable energy facilities to earn additional income by selling certificates to international buyers, alongside revenue from electricity generation.

The company said the accreditation would enable Nigeria to retain more of the expertise, data and oversight associated with the emerging market, while connecting local renewable energy projects to international buyers seeking verified clean electricity attributes.

The I-TRACK Foundation operates the I-REC Standard, a system for tracking and certifying energy attributes outside Europe and North America. The organisation operates in more than 70 countries, with certificates carrying unique serial numbers recorded on its global registry and traded across borders.

EFMS Chief Executive Officer, Ibukun Adebayo, said the accreditation represented an important step in developing the institutional infrastructure required for a transparent electricity market in Lagos.

“Lagos State is building the institutional infrastructure for a modern, transparent electricity market. Being accredited as the I-REC(E) issuer is a foundational part of that work,” Adebayo said.

“For the first time, the certificates that prove clean energy was generated in Lagos will be issued by a Nigerian company, under the supervision of Nigerian regulators, in service of Nigerian climate and energy policy,” Adebayo added.

The I-TRACK Foundation’s Executive Director, Jard Braslawsky, said the availability of local issuers would support market participants and strengthen the infrastructure for tracking and substantiating renewable electricity consumption.

“The approval of EF Market Solutions is a welcome development for the continued expansion of the I-REC(E) system,” Braslawsky said.

“The availability of local issuers plays an important role in supporting market participants and strengthening the infrastructure needed to track and substantiate renewable electricity consumption,” Braslawsky explained.

The scale of the opportunity is reflected in the growth of the global market. According to figures cited in the company’s announcement, about 270 million renewable energy certificates were issued worldwide in 2024, while approximately 346 million were issued in 2025.

The broader renewable energy certificate market is projected to expand from $27.99 billion in 2025 to $45.45 billion by 2030, according to MarketsandMarkets. The projection covers the wider certificate market and not exclusively I-REC(E) transactions.

Nigeria’s market, however, remains relatively small. Data from the I-TRACK Foundation’s registry, as cited by EFMS, showed that 522 certificate issuances had been recorded in Nigeria between 2020 and September 2026.

The number increased from 27 in 2024 to 218 in 2025 and 236 in the first nine months of 2026. All the issuances recorded during the period were attributed to The Green Certificate Company, the UK-based firm that previously held the role.

EFMS’s accreditation introduces a Nigerian issuer into the market, although the commercial value that local renewable energy operators will ultimately derive will depend on project registration, verification, buyer demand and the prices secured for the certificates.

The company’s appointment received a letter of no objection from the Lagos State Ministry of Energy and Mineral Resources, whose Commissioner, Biodun Ogunleye, has supported the development of the state’s decentralised electricity market.

The Lagos Carbon Initiative was announced by Governor Babajide Sanwo-Olu at the Lagos Climate Summit in November 2025. The initiative is being developed through a joint venture involving EFMS, the Lagos State Environmental Protection Agency and IBILE Holdings Limited, the state government’s investment arm.

The platform is expected to provide environmental market infrastructure, a climate finance platform and a carbon registry system. Certificates issued for eligible Nigerian renewable energy projects registered through the platform will also carry a verification mark known as the Lagos Standard.

Lagos provides a significant potential market for such projects. Figures from the state government’s 2025 Economic Development Update indicate that the national grid supplies about 1,000 megawatts to the state, while petrol and diesel generators provide approximately 15,000 megawatts.

The state estimates that the cost of generator-powered electricity adds N5.3 trillion annually to the expenses of residents and businesses.

The federal government has also estimated that implementing Nigeria’s energy transition plan could save the country $121 billion in fuel costs, although achieving the transition would require an additional $10 billion in investment annually.