The Federal Government has called on all involved stakeholders to support the implementation of a carbon Tax as a solution to combat Climate Change in the nation. According to the World Health Organization (WHO), 46,750 individuals lost their lives in Nigeria in one year due to outdoor pollution. On July 4, 2024, Prof Romanus Ezeokonkwo, the Acting Vice Chancellor of the University of Nigeria, Nsukka (UNN), shared his thoughts at a workshop for stakeholders titled “Understanding the Incentives and Obstacles to Effective Carbon Tax Regimes in West African Countries”.
Ezeokonkwo explained that Taxation is a fee imposed on the quantity of the component released into the atmosphere. He noted that the Federal Government, under the initiative led by the National Council on Climate Change (NCCC), is in the process of creating a structure to calculate the fee according to the volume of emissions. He mentioned that plans were being developed by the Federal Government, with the help of the NCCC, to establish a strong Finance system, which includes a carbon market framework as well as a tax structure that aligns with the Climate Change Act.
Education should be provided to the public to support the government.
He emphasised the importance of reducing Greenhouse gas Emissions through policies like carbon taxation, which is in line with the global conversation on climate change mitigation. The Vice-Chancellor urged the stakeholders to educate the public and encourage their support for the government’s plan. The workshop focuses on the current relevance of establishing a strong finance, market framework, and carbon tax system in accordance with the policy as the Federal Government, alongside the NCCC, works on devising strategies for their implementation.
In light of the current international focus on addressing climate change by lowering greenhouse gas emissions through methods like taxation, the timing of this workshop is key. Their involvement as stakeholders is essential, as gaining public approval for environmental initiatives, particularly in Africa, continues to be a major obstacle despite the recognised effectiveness of carbon pricing in the fight against global warming. He emphasised the importance of receiving input from key stakeholders in Nigeria and Ghana regarding carbon pricing and fuel subsidy reforms during this workshop.
Reliance on fossil fuels will be discouraged with the initiative.
Abass Tasunti, the Head of Economic Regulation at the National Petroleum Authority of Ghana, mentioned during his speech that Ghana is working towards a significant reduction in Fossil Fuel emissions. Tasunti specifically pointed out that the main focus is on industries that have high levels of carbon emissions. Despite this goal, he noted that the country has still not established a set rate. In his opinion, the primary goal of taxation is to implement taxes that encourage individuals to reduce their reliance on fossil fuels.
Government officials are exploring the implementation of taxes on petroleum goods as a means to fund the development of alternative fuel sources. Introducing these measures will offer consumers more choices, as they all understand that fossil fuels will remain in use for the foreseeable future, one official explained. These efforts to tax carbon emissions and promote cleaner energy sources are intended to work alongside the continued consumption of fossil fuels. This move not only ensures that industries take responsibility for their carbon emissions but also encourages the adoption of Eco-friendly and sustainable methods.
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Moreover, the partnership between Nigeria and Ghana in implementing carbon pricing and fuel subsidy adjustments illustrates a collective effort to tackle environmental issues in West Africa. Nigeria and Ghana are leading the way in addressing climate change by collaborating on the finance system and market framework. This joint effort showcases their commitment to combating the urgent threat of climate change and sets an example for other African nations to follow. Together, they have the opportunity to inspire a united front towards a greener, more secure future for the continent.