Considering the rising cost of petroleum products and the widespread demand for clean and renewable energy to lower carbon dioxide pollution to meet global emissions targets in developed and developing countries. For this reason, alternative energy sources such as solar, wind, and thermal have become crucial. This energy must be cheaper, and safer, and contribute significantly to energy development. Nigeria is faced with the problem of poor access to power supply, which contributes to retarded industrial growth, insecurity, and mass unemployment. Alternative sources, such as solar energy, bio-energy, etc are capable of solving the energy crisis in Nigeria with average solar insolation of 7.0KWℎ∕m2 per day in the north and 3.5KWℎ∕m2 per day) in the south. Biofuels such as bioethanol and biodiesel produced from biomass are also promising alternatives. They can reduce harmful emissions and give Nigeria hope for energy security and sustainable development. This paper reviews the potential of various renewable sources for energy generation in Nigeria. Presently, Nigeria requires thermal power plants from renewable sources capable of providing 13000MW, to meet the daily energy needs in Nigeria compared to the available 4000MW which is insufficient for over two hundred (200) million Nigerians. This study identifies biofuels as a major energy innovation for car engines, gas turbines, power plants, etc. In Nigeria and throughout sub-Saharan Africa, the use of biofuels could prevent energy shortages and promote more sustainable development. Challenges to widespread biofuel adoption in developing countries include deforestation, land scarcity, and the conflict between energy production and food security. It concludes that significant spending on energy research and the right institutional and governmental frameworks are needed to overcome the difficulties in order to realize the potential of alternative energy for sustainable development

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