Climate change remains a pivotal area and a persistent challenging issue for deliberation among the nations of the world. Most especially in a country like Nigeria, where fossil fuel remains a pivotal source of socio-economic development and well-being of the society. Transforming the Nigeria electricity sector into a source for reducing the country’s carbon emission remains a significant challenge to policymakers, i.e. the Government. This is attributed to the fact that the nation’s primary energy sources come from traditional biomass and fossil fuel such as coal, and natural oil and gas, which has contributed significantly to the level of carbon emissions. In this paper, we explored and identified the potentials, barriers and option for renewable energy in Nigeria. The findings of the review revealed that the Nigerian electricity sector is crucial to reducing the carbon emission generated in the country. Likewise, it is of no doubt that Nigeria is endowed with a different mix of renewable energy sources. Hence, exploring and developing these renewable energy sources will aid the effort of the government in reducing the country’s input to the global carbon emission, instrumental to the socio-economic development of the country and improved well-being of the society at large. Also, policy recommendations to foster renewable energy development were identified.