Nigeria has taken a significant step into the international renewable energy certificate market following the accreditation of EF Market Solutions Nigeria Limited (EFMS) as an authorised issuer of internationally recognised renewable energy certificates in Lagos State.

The accreditation, granted 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. The development also replaces a United Kingdom-based company that previously managed the issuance of the certificates in Nigeria.

The approval creates an opportunity for local renewable energy operators to generate additional foreign currency income from the electricity they produce, while connecting Nigerian clean energy projects with international buyers.

The development comes as Lagos State seeks between $14 billion and $33 billion in new power generation investments by 2030. Meanwhile, businesses and households across the state continue to rely heavily on petrol and diesel generators to compensate for 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, according to a company statement.

Each certificate represents one megawatt-hour of verified renewable electricity generation. Companies can purchase the certificates to substantiate claims about their consumption of clean energy and report indirect greenhouse gas emissions in line with international accounting standards.

The framework also provides an additional revenue stream for owners of eligible solar installations and other renewable energy facilities. Beyond earnings from electricity generation, these operators can sell certificates to international buyers seeking verified renewable energy attributes.

EFMS said its accreditation would allow Nigeria to retain more of the expertise, data and oversight associated with the emerging market. It would also strengthen connections between domestic renewable energy projects and international buyers seeking verified clean electricity.

The I-TRACK Foundation administers the I-REC Standard, which tracks and certifies energy attributes in markets outside Europe and North America. Its operations extend to more than 70 countries, with each certificate assigned a unique serial number, documented on its global registry and traded internationally.

EFMS Chief Executive Officer, Ibukun Adebayo, described the accreditation as an important milestone in establishing the institutional structures needed to support 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, also welcomed the development, noting the importance of local issuers in expanding the renewable energy certificate system.

“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.

Figures referenced in EFMS’s announcement highlight the expansion of the international market. Approximately 270 million renewable energy certificates were issued globally in 2024, increasing to about 346 million in 2025.

Beyond the I-REC(E) system, the wider renewable energy certificate market is forecast to grow from $27.99 billion in 2025 to $45.45 billion by 2030, according to MarketsandMarkets. The projection relates to the broader certificate market rather than I-REC(E) transactions alone.

Despite the international growth, Nigeria’s participation remains relatively limited. Data from the I-TRACK Foundation’s registry, cited by EFMS, showed that 522 certificate issuances were recorded in the country between 2020 and September 2026.

The figures indicate a rise from 27 issuances in 2024 to 218 in 2025, followed by 236 in the first nine months of 2026. All certificates recorded within the period were attributed to The Green Certificate Company, the UK-based organisation that previously held the issuer role in Nigeria.

EFMS’s accreditation introduces a locally based issuer into the market. However, the financial benefits renewable energy operators can obtain will depend on several factors, including project registration, verification, demand from buyers and the prices achieved through certificate sales.

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

Governor Babajide Sanwo-Olu announced the Lagos Carbon Initiative 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 Lagos State Government’s investment arm.

The platform is expected to deliver environmental market infrastructure, a climate finance platform and a carbon registry system. Eligible Nigerian renewable energy projects registered through the initiative will also receive certificates bearing a verification mark known as the Lagos Standard.

The scale of Lagos State’s electricity demand presents a substantial potential market for renewable energy projects.

According to the state government’s 2025 Economic Development Update, the national grid supplies approximately 1,000 megawatts to Lagos, while petrol and diesel generators contribute an estimated 15,000 megawatts.

The state government also estimates that electricity generated through petrol and diesel generators costs residents and businesses an additional N5.3 trillion annually.

At the national level, the Federal Government has estimated that implementing Nigeria’s energy transition plan could save the country $121 billion in fuel costs. However, achieving the transition would require an additional $10 billion in investment every year.

SOURCE: ThisDay