Climate Policy and Finance: Designing an Effective Carbon Pricing System for Nigeria’s Oil and Gas Sector

This study provides evidence-based analysis and recommendations for designing an effective carbon pricing system that discourages air pollution and encourages the gradual uptake of climate-friendly technologies by the oil and gas sector, while supporting public investment in sustainable infrastructures that can offset the regressive effect of the climate policy in Nigeria. The study focuses on the oil and gas sector because of the greater need for climate action especially in the oil and gas sector –on account of its importance to the productive capacity of Nigeria as well as its contribution to current and future GHG emissions. Substantial amounts of GHG are given off during oil and gas production via fuel combustion and gasification, leaking equipment, natural gas transmission, distribution lines, storage facilities, and gas flaring.