Nigeria's Clean Cooking Sector Presents Scalable Climate and Investment Opportunity
The Nigerian clean cooking industry is positioning itself as one of the country's most immediate and scalable climate solutions, offering significant investment potential alongside substantial health and economic benefits. This emerging sector combines environmental action with practical household improvements, creating a unique opportunity for both climate progress and financial returns.
Policy Framework Strengthens Investment Case
Recent policy developments have significantly strengthened the investment landscape for clean cooking in Nigeria. The Nigeria Carbon Market Activation Policy (NCMAP) and the Tax Reform Act introduced in 2026 have provided much-needed market clarity and enforcement mechanisms. These policy frameworks are improving access to private capital and creating a more predictable environment for investors interested in climate solutions.
During a recent high-level media roundtable convened by BURN, experts emphasized how aligned policy frameworks can unlock private-sector-led climate action. The discussions highlighted that clean cooking represents one of Nigeria's most investable climate interventions, with the potential to deliver measurable outcomes quickly and efficiently.
Local Manufacturing Drives Industrial Growth
BURN, the world's leading clean cookstove company and carbon project developer, has made substantial investments in Nigeria's manufacturing capacity. Since launching operations in 2018, the company has invested more than US$9.6 million in the country, including establishing an ISO-certified assembly plant in Kano.
This facility currently produces 40,000 clean cooking appliances monthly, with capacity to scale to 100,000 units. The manufacturing operation supports Nigeria's industrialization agenda while creating skilled local employment opportunities. BURN employs 700 people nationwide, with nearly 40% of the workforce being women.
Carbon Finance Enables Household Access
Through innovative use of carbon finance, BURN has implemented subsidy programs that make clean cooking technology accessible to Nigerian households. The company has subsidized stove prices by 60–100%, delivering approximately US$15 million in discounts to families across the country.
This approach enables households to access a US$40 stove for as little as US$5, dramatically reducing the financial barrier to adoption. BURN has distributed nearly 1,000,000 fuel-efficient cookstoves nationwide, impacting over 1.4 million lives with improved cooking technology.
Multiple Benefits for Climate and Health
Clean cooking addresses multiple challenges simultaneously. With more than 80% of Nigerian households still dependent on biomass fuels, inefficient cooking places significant pressure on forests, household incomes, and public health systems. Globally, inefficient cooking accounts for nearly one gigaton of CO₂-equivalent emissions annually.
Etulan Ikpoki, Country Manager of BURN Nigeria, emphasized the practical benefits: "Clean cooking is one of the few climate solutions Nigeria can scale quickly, credibly, and at household level. When local manufacturing, strong standards, and carbon finance work together, the results are immediate—lower emissions, healthier families, and real economic value."
Government Support and Future Outlook
Government officials have expressed strong support for clean cooking initiatives. Olamide Fagbuji, Senior Special Assistant to the President on Climate Technology & Operations, noted: "Clean cooking is a practical transition Nigeria can scale quickly, with immediate benefits for families. When technology, strong standards, local manufacturing, and affordable financing align, it becomes a fast route to deliver our climate and energy commitments."
Ibrahim Shelleng, Senior Special Assistant to the President on Climate Finance & Stakeholder Engagement, highlighted the importance of converting policy momentum into bankable programs: "The priority now is converting policy momentum into bankable programmes, backed by credible monitoring, clear rules, and coordinated action."
Regional Impact and Company Background
Across Africa, BURN has distributed approximately 6.3 million clean cooking appliances, improving the lives of 32.5 million people. The company's efforts have reduced household fuel costs by US$2.3 billion, lowered indoor air pollution by 65–100%, and protected forests by saving more than 36.5 million tons of wood.
Founded in 2011 with the mission to save forests by revolutionizing the cookstove sector, BURN has grown to become the world's leading clean cooking company. The organization is one of the only carbon project developers to cover the full carbon value chain, from project design and in-house monitoring to credit issuance.
As Nigeria continues to implement its National Energy Transition Plan and NDC 3.0 commitments, clean cooking stands out as a practical, scalable solution that delivers immediate benefits while creating long-term investment opportunities in the green economy.
