Nigeria has entered a new phase in 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 approval, 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 company replaces The Green Certificate Company, a United Kingdom-based firm that previously managed certificate issuance in Nigeria.

The development creates an opportunity for local renewable energy producers, particularly solar operators, to generate additional foreign-currency revenue by selling certificates linked to the electricity they produce.

EFMS will issue the certificates through the Lagos Carbon Initiative, an environmental market infrastructure and climate finance platform being 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 them to substantiate claims about their clean energy consumption and report indirect greenhouse gas emissions in line with international accounting standards.

The system also allows owners of eligible solar installations and other renewable energy facilities to earn additional income from international buyers, alongside their existing electricity sales.

EFMS said its accreditation would help Nigeria retain more of the expertise, data management and oversight associated with the growing market while connecting domestic renewable energy projects with international buyers seeking verified clean electricity attributes.

The I-TRACK Foundation administers the I-REC Standard, which tracks and certifies energy attributes in markets outside Europe and North America. It operates in more than 70 countries, with certificates assigned unique serial numbers on its global registry and traded internationally.

EFMS Chief Executive Officer, Ibukun Adebayo, described the accreditation as an important step towards establishing the institutional framework 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.

I-TRACK Foundation Executive Director, Jard Braslawsky, also welcomed the approval, highlighting the importance of having local issuers to support market participants and strengthen renewable electricity tracking systems.

“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.

Global market growth and Nigeria’s position

The accreditation comes amid significant expansion in the global renewable energy certificate market. Figures cited in EFMS’s announcement show that approximately 270 million renewable energy certificates were issued worldwide in 2024, increasing to about 346 million in 2025.

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

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

Annual issuances rose from 27 in 2024 to 218 in 2025, reaching 236 within the first nine months of 2026. All certificates recorded during the period were issued by The Green Certificate Company, the UK-based organisation that previously held the Nigerian mandate.

EFMS’s entry introduces a domestic issuer into the market. However, the financial benefits renewable energy operators eventually receive will depend on project registration, verification, international buyer demand and the prices secured for their certificates.

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.

Lagos Carbon Initiative and power investment needs

The Lagos Carbon Initiative was unveiled by Governor Babajide Sanwo-Olu at the Lagos Climate Summit in November 2025.

Its development involves a joint venture between EFMS, the Lagos State Environmental Protection Agency and IBILE Holdings Limited, the investment arm of the state government.

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

The initiative comes as Lagos seeks between $14 billion and $33 billion in additional power generation investment by 2030.

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

The state estimates that electricity generated through petrol and diesel generators adds N5.3 trillion to the annual expenses of residents and businesses.

Businesses and households continue to rely heavily on private generators to supplement the inadequate electricity supplied through the national grid.

At the national level, the Federal Government estimates 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.

EFMS’s accreditation therefore introduces a Nigerian institution into the international renewable energy certificate system, creating a new channel through which eligible domestic clean energy projects can participate in the global market.

SOURCE: Arise TV