Abstract
This article gives an exhaustive legal analysis of the European Union’s Carbon Border Adjustment Mechanisms (CBAM) and examines how Nigeria can coincide its domestic legal framework with global carbon-linked trade rules. CBAM, which begins full operation in 2026, demands EU carbon pricing on imports such as steel, aluminum, fertilizer, hydrogen, cement, and electricity, advancing the Paris Agreement’s objectives under Articles 2(1)(a), 4, and 6. The article argues that CBAM is lawful under WTO law, provided transparency, non-discrimination, and credible MRV systems are maintained. Using Nigeria as a case study, the article identifies weaknesses in Nigeria’s climate governance notwithstanding its Constitutional and environmental mandate under Sections 1(3) and 20, and judicial pronouncements regarding environmental rights in Gbemre v. Shell. It evaluates how Sections 52 and 104(4) of the Petroleum Industry Act, Section 20 of the Climate Change Act on carbon limits mandate, and the Energy Transition Plan 2022 are instrumental, but inadequate for CBAM requirements. Nigeria’s lack of enforcement, poor MRV policies and lack of carbon-pricing policies expose exporters to increased CBAM accountabilities and restricted competition. Some of the recommendations include comprehensive legal and institutional reforms for carbon accounting where Nigeria benefits from Articles 6 and 9 of the Paris Agreements and enhance Nigeria’s role in decarbonisation.