This study has examined the position of Nigeria in relation to carbon dioxide (CO2) emission in readiness for emission trading as proposed in the Kyoto protocol as a measure of reducing Global warming. It was discovered that Nigeria emits only 0.4% of the total Worlds CO2 emission indicating that they will be possible sellers of emission as contained in the Kyoto protocol. Fifty countries were selected for the analysis and some possible correlates of CO2 were considered. Correlation analysis and Principal Component analysis used revealed that Gross domestic product and Industrial output accounted for 93% of the total variation. Based on this, a very low economic activity is being experienced in the country.