Full Speech of UN Resident and Humanitarian Coordinator in Nigeria at Stakeholder Consultation Workshop on a Pilot Carbon Tax Design in Nigeria's Telecommunications Sector

Speech Delivered by Mr. Mohamed M. Malick Fall, UN Resident and Humanitarian Coordinator in Nigeria.

Distinguished Guests, Esteemed Stakeholders, Ladies and Gentlemen,

It is an honor to join you today at this important Stakeholder Consultation Workshop on a Pilot Carbon Tax Design in Nigeria’s Telecommunications Sector. This workshop is a crucial milestone in Nigeria’s journey toward sustainable development and climate action – specifically navigating the subject of innovative climate finance.

Climate change is no longer a distant threat; it is a present and escalating crisis that affects every corner of the world. Globally, we have witnessed record-breaking heatwaves, devastating floods, prolonged droughts, and severe wildfires that have displaced communities, resulted in loss of life, destroyed livelihoods, and disrupted economies. The most vulnerable populations, particularly in developing countries, bear the heaviest burden of these impacts. Although recently, we have also witnessed climate change impacts even in developed economies - which implies the need for collective actions, strengthened multilateralism and coordinated actions across all countries. Some good examples include - the recent wildfires in Los Angeles, the tropical cyclones and hurricanes flooding in Europe and the droughts that have also ravaged many parts of the world.

Here in Nigeria, we are experiencing firsthand the devastating effects of climate change. In 2022, catastrophic floods affected 33 of Nigeria's 36 states, resulting in over 600 fatalities and displacing more than 1.4 million people. States such as Kogi, Anambra, and Bayelsa were among the hardest hit, with extensive damage to homes, infrastructure, and farmlands.

In April 2024, the city of Sokoto in northwestern Nigeria recorded an unprecedented temperature of 44.8°C, highlighting the increasing frequency of extreme heat events in the region.

Erratic rainfall patterns continue to threaten agriculture and food security, impacting millions of farmers and households. In the north, increasing desertification is exacerbating conflicts over land and water resources, while rising sea levels along Nigeria’s coastline pose a significant threat to cities like Lagos and Port Harcourt.

The message is clear: climate change is no longer just an environmental issue; it is an economic, social, and security challenge that requires urgent and sustained action. In fact – climate change is now one of the key developmental challenges that governments need to deal with – alongside the other two other planetary challenges of biodiversity loss and pollution.

Distinguished Guests, Esteemed Stakeholders, Ladies and Gentlemen,

Nigeria has taken bold steps to address this challenge. Through its updated Nationally Determined Contributions (NDCs), the country has committed to reducing greenhouse gas (GHG) emissions by 20% unconditionally and up to 47% conditionally by 2030. Achieving these ambitious targets requires a multi-pronged approach that includes renewable energy expansion, energy efficiency measures, climate-smart agriculture, and carbon pricing mechanisms.

But first, allow me to reflect on this subject of carbon pricing!

As we have seen, the scale of investment required to address climate change, both in adaptation and mitigation, is immense. This brings me to a critical point: the indispensable role of the private sector in answering the global call for climate action. Governments alone cannot shoulder this burden.

We need businesses to step up and actively participate in financing the transition to a sustainable future, bringing with them not only capital but also depth in innovation and expertise. The private sector has a unique capacity to develop and implement innovative financing mechanisms, from green bonds and blended finance to impact investing and carbon offset programs.

These mechanisms can unlock the vast sums needed to fund climate-resilient infrastructure, renewable energy projects, and other vital initiatives – right here in Nigeria.

However, private sector involvement cannot be solely driven by profit motives. It must be guided by strong principles, and here, I want to emphasize the importance of ESG – Environmental, Social, and Governance – principles. Integrating ESG factors into business strategies is not just a matter of corporate social responsibility; it's a fundamental requirement for long-term sustainability and value creation. Companies that prioritize environmental protection, social equity, and good governance are not only contributing to a better world, but they are also building more resilient and successful businesses. Investors are increasingly recognizing the importance of ESG, and they are directing their capital towards companies that demonstrate a commitment to sustainability. By embracing ESG principles, businesses can attract investment, enhance their reputation, and create a positive impact on society and the environment.

Now, let me try to address the topic of carbon pricing - which is sometimes seen by many to be simply just another tax.

Too often, carbon taxes are viewed simply as a burden, an added cost for businesses. I urge us to shift our perspective. Carbon pricing, whether through a tax or an emissions trading system, should be seen not just as a tax, but as an investment – an investment in securing our common future – for the benefit of us and our unborn children. Indeed, carbon pricing is an increasingly recognized tool for emission reduction globally, with 75 carbon pricing instruments currently in operation, including 39 carbon taxes and 36 emissions trading systems. These mechanisms encourage businesses to shift toward cleaner technologies while generating revenue that can be reinvested in sustainable development.

That is why I must appreciate the Government of Nigeria and the telecommunications sector. Nigeria’s decision to explore a pilot carbon tax in the telecommunications sector is a commendable step in this direction. The telecom industry, while essential for Nigeria’s economic growth and digital connectivity, is also a significant emitter due to its reliance on diesel-powered infrastructure. A well-designed carbon tax will incentivize investment in cleaner energy sources, improve energy efficiency, and support Nigeria’s broader climate goals. The revenue generated from this carbon tax can be strategically reinvested in supporting renewable energy development, funding energy efficiency programs, and assisting communities in adapting to the impacts of climate change. It is a mechanism that can drive innovation, create jobs, and accelerate our transition to a low-carbon economy. By viewing carbon pricing as an investment, we can unlock its potential to drive sustainable development and secure a prosperous future for all....

As we explore this new frontier, which is a carbon tax in Nigeria’s climate policy, we must ensure that no one is left behind. We must consult broadly and ensure that a carbon tax does not become a heavy burden on consumers or small businesses. Instead, it should serve as a catalyst for green innovation and unleash new economic opportunities. I encourage all participants to approach discussions today and subsequently with openness, creativity, and a commitment to equity in the design of this policy.

Distinguished Guests, Esteemed Stakeholders, Ladies and Gentlemen,

Let me reassure all of you that Nigeria's journey towards a sustainable future is not one will leave you to walk alone. The United Nations family, through its diverse agencies, stands as a committed partner to Nigeria through our development efforts, working hand-in-hand with all of you to address the complex challenges of climate change.

Let me highlight some of the key contributions:  

The UNDP is playing a pivotal role, not only supporting Nigeria’s climate action through the Climate Promise, but also acting as a crucial mobilizer and coordinator, bringing together all UN agencies to support the development and implementation of a robust and ambitious NDC 3.0 for Nigeria. This collaborative approach ensures that our climate strategy is comprehensive and impactful.

UNEP is providing invaluable support through various projects focused on environmental sustainability and building our climate resilience. Their expertise is helping us protect our ecosystems and adapt to the changing climate.

FAO is working on the ground, promoting climate-smart agricultural practices that enhance food security while reducing emissions. This is vital for a nation like ours, where agriculture plays a crucial role in livelihoods and the economy.

The ILO is ensuring that our transition to a green economy is a just transition, creating decent work opportunities and empowering our workforce for the jobs of the future. This is essential for inclusive and sustainable development.

The UNFCCC, through the RCC WAC Africa, has also been quite instrumental in supporting our exploration of innovative climate finance mechanisms, including the interesting subject of carbon pricing. The UNFCCC’s guidance has been invaluable in helping all of us to navigate this complex landscape, and their support is exemplified by our gathering here today.

UNIDO is driving industrial decarbonization and promoting clean energy projects, helping us to green our industries and build a more sustainable economy.  

This collective effort from the UN family, combined with the active participation of the private sector – some her with us today - guided by growing ESG principles, and supported by forward-thinking policies like carbon pricing, is what will truly drive Nigeria's transformation towards a resilient, low-carbon future.

Let me conclude by reiterating that we – in the UN System in Nigeria are committed to this journey, and we are grateful for the continued partnership with the Federal and State Governments of Nigeria – the Giant of Africa.

Closing Remarks

As we embark on this discussion today, I urge all stakeholders to actively participate, share knowledge, and collaborate to ensure that this pilot carbon tax design is effective, equitable, and aligned with Nigeria’s development aspirations.

The outcomes of this workshop will lay the foundation for future climate policies in Nigeria and demonstrate the country’s leadership in adopting innovative solutions for emission reductions.

On behalf of the United Nations in Nigeria, I wish you all a fruitful and productive workshop.

Thank you.