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BURN’s carbon finance model transforming clean cooking in Nigeria

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For millions of Nigerian families, cooking remains one of the most expensive and dangerous daily activities – costing money, health, and forests.

At a recent industry gathering, BURN Manufacturing made a strong case that clean cooking is no longer just an environmental conversation, but a matter of economic survival, public health, and smart policy, powered by the government.

Addressing stakeholders at the event, Chidi Ohaji, Channel Sales Manager at BURN, explained how the company is linking household cooking habits to global climate finance – turning efficient cookstoves into tools for poverty reduction and climate action.

BURN
From L-R: Chijioke Odo, Deloitte; Etulan Ikpoki, BURN Country Manager; Engr. Benedict Souarede Preake, SON; and Victoria Onuoha, MAN Head of Green Manufacturing Agenda

“At the end of the day,” Ohaji said, “this is about helping families spend less, breathe better, and live longer, while protecting our forests.”

Ohaji added: “Across the world, about 2.4 billion people still cook with biomass, relying on firewood and charcoal. In Africa, nearly 80% of charcoal is produced unsustainably, accelerating deforestation and environmental degradation. 

“For households, the impact is personal. Traditional stoves waste fuel, produce thick smoke, and expose women and children to serious respiratory illnesses. In some cases, indoor cooking with inefficient stoves has led to fatal carbon monoxide poisoning. 

“We are paying for cooking twice,” Ohaji noted. “One with money, and again with our health.” 

The Channel Sales Manager noted that BURN’s response is deceptively simple: use less fuel to cook the same food. Its improved cookstoves are designed to retain heat, reduce smoke, and cut fuel consumption dramatically.

With more than 6.3 million stoves sold globally, BURN estimates it has already saved 6.5 million tons of wood and helped households avoid $2.3 billion in energy expenses.

During its recent media roundtable, BURN revealed how some models of their stoves achieve up to 72% thermal efficiency, compared to traditional three-stone fire stoves that lose most of their heat to the air. That efficiency translates into faster cooking, cleaner kitchens, and real savings.

“If you were spending ₦10,000 on fuel,” Ohaji explained, “and now you will end up spending just ₦2,000, that’s ₦8,000 difference in life-changing costs in energy.”

Beyond households, BURN impact is being felt in Nigeria’s manufacturing sector. The company operates what is believed to be the world’s largest modern cookstove production network, producing over 250,000 units monthly and employing 3,500 people globally, half of them women.

The opening of BURN Nigerian manufacturing facility in November 2023 marked a turning point. The factory now supplies wood, charcoal, and LPG stoves across Nigeria and West Africa, employs around 700 workers, and has eliminated costly import delays.

“Local manufacturing changed everything,” said Etulan Ikpoki, Country Manager of BURN Manufacturing Nigeria. “We reduced costs, created jobs, and shortened our supply chain. What used to take 90 days now happens locally.”

One of the most striking points at the event was affordability. A high-quality cookstove that should cost around ₦58,000 is sold to low-income households for ₦15,000 or less – sometimes as low as ₦5,000.

By reducing the amount of wood and charcoal households burn, BURN prevents carbon emissions from entering the atmosphere. These avoided emissions are verified through usage tracking, household monitoring, and kitchen performance tests, then converted into carbon credits.

Investors purchase these credits, providing upfront funding that subsidises stove prices. Revenues are reinvested into research, expansion, and reaching more families.

“This only works if people actually use the stoves,” Ohaji stressed. “That’s why monitoring and long-term engagement matter.”

Independent research by the University of Pennsylvania and the University of Chicago, covering 1,000 low-income households in Kenya, confirmed BURN’s claims: “$119 in annual household savings, $1,000 return to society over three years, 98% customer satisfaction and 3.5 tons of carbon saved per stove each year.” 

Panelists agreed that Nigeria is well-positioned to scale clean cooking – but only if policy gaps are addressed.

Despite its climate commitments under the Paris Agreement and its 2030 emission-reduction targets, clean cookstoves are not classified as essential household items, limiting VAT exemptions and import duty relief. Consumer financing options also remain limited.

Equally critical is the implementation of Nigeria’s carbon market framework. While recent policy activation has sent positive signals, investors need clarity around registries, revenue flows, and enforcement.

“There must be predictability,” Ikpoki said. “Investors won’t come unless they know the system works.”

Another concern raised was the flood of counterfeit stoves in Nigerian markets, which undermines safety standards and discourages legitimate manufacturers.

“This has to stop at the ports,” Ikpoki warned, calling for closer collaboration between the Standards Organisation of Nigeria, Customs, and market surveillance agencies.

The event closed with a panel discussion featuring Benedict Souarede Preake of the Standards Organisation of Nigeria, Mrs. Victoria Onuoha of the Manufacturers Association of Nigeria, Chijoke Odoisan of Deloitte, Olamide Fagbuji from the Office of President Bola Ahmed Tinubu, and other stakeholders.

Their message was unified: clean cooking is not a luxury – it is infrastructure.

With the right policies, carbon finance could turn everyday kitchens into engines of climate action, public health improvement, job creation, and foreign investment.

As Ohaji concluded, “When clean cooking is affordable, everyone wins – the family, the forest, and the future.”

By Ajibola Adedoye

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