Forest land use among farming households in Nigeria contributes adverse environment effect. The study assessed adoption and the cost implication of sustainable forest land use (agroforestry practices) among farming households in Nigeria forest reserves. A total of 300 farming households were randomly sampled using a multistage sampling technique. It was revealed that household size (p<0.01), non-farm income (p<0.01) and current farm debt (p<0.01) are main factors that exert influence on choice of agroforestry systems and consequently cost of carbon sequestration. The cost estimate of carbon sequestration among households revealed that the lowest cost of carbon sequestration was recorded from boundary planting system of agroforestry. If a total of 55 Mg C is sequestered per hectare per year, carbon would be sold as low as N1,498.9 ≡$3.9. It was observed that planting trees haphazardly on farm plot will leave carbon sequestration cost at a range of $11.5 and $144. Likewise, hedgerow intercropping will yield a cost range of $63.5 and $38. The study therefore concludes that, boundary planting of trees around farm land provides a low cost of achieving carbon sequestration while addressing unhealthy forest land use among farming households in Nigeria.