Evaluating the legal framework for sustainable carbon tax and budgetary system in Nigeria

Abstract

Nigeria as part of its own contributions to the reduction of global warming introduced the carbon tax policy as a radical intervention to  step up a desire in corporate firms and industries to rethink their manner of doing business and sources of energy. The Federal  Government of Nigeria on 13th February 2023 took cognitive action to harness future gains from reducing gas flaring.1 The objective of  this paper is to examine how far the carbon taxing policy in Nigeria can be effectively activated. The paper adopted doctrinal research  method. It was discovered that the nations businesses and industries need commitments in the form of the carbon tax, to effectively  reduce their carbon footprints, but the infrastructure and technology to administer the tax is not yet adequate. It was also the finding of  the paper that there is need to determine the uses that the fund collected from carbon tax will be put to, and to determine the industrial  sectors that most need the implementation of the tax. Such funds can lead to massive infrastructural development in other key sectors  such as health and education. It is therefore recommended that the introduction of the carbon tax Policy, as well as modalities for carbon  trading should be speedily implemented with policy guidelines, legal framework and assistance by the National Council on  Climate Change (NCCC).