Abstract: In this study, current and future perspectives of energy utilization and renewable energy options in Nigeria are examined and discussed from the standpoint of sustainable development. It is a well known fact that oil is Nigeria’s major source of revenue and the mainstay of her economy hence, it is susceptible to global energy dynamics due to the country’s unstable policies. The escalating demand in energy arising from economic activities and an ever increasing population has not been matched by investment in the provision of infrastructure required to meet the energy needs. The over dependence on oil as a major source of energy has put the country at a risk in view of the fast diminishing oil reserves, inadequate refining capacity to meet domestic consumption and serious cases of energy insecurity such as that of the Niger Delta. The electricity production capacity based largely on fossil fuel sources is at present below 3149 MW in a country with an approximate population of 150 million people. And yet her vast renewable energy resources comprising mainly hydro, solar, biomass and wind is very enormous and remain largely untapped. Energy projection based on four different growth scenarios shows a geometric increase in total energy demand by the year 2030. In this regard, full exploitation and promotion of renewable energy resources will provide a most efficient and effective means of achieving sustainable energy development in Nigeria.