
Nigeria is at a critical crossroads: despite oil and gas earnings historically underpinning the economy, the nation endures persistent electricity shortages, significant dependence on diesel generators, and the social challenges posed by an unstable power supply. Recent policy and market indicators, such as the Energy Transition Plan (ETP), updated NDC commitments, and increasing investor interest in distributed renewable energy (DRE), present a strategic opportunity to expedite renewable energy deployment, enhance electricity access, reduce emissions, and foster resilient local economies. This study amalgamates technical, economic, institutional, and social viewpoints to delineate prioritised routes for Nigeria's low-carbon transformation. We evaluate the framework and limitations of the existing energy system by utilising evidence from scholarly research, national policy frameworks, and international assessments. We analyse the potential and deployment options for renewable resources at both utility and decentralised levels, explore financing and institutional challenges, and propose specific policy and implementation strategies. The analysis indicates that Nigeria's renewable energy resources—solar, hydro, biomass, and localised wind—are underutilised due to ongoing system instability, financial deficiencies, and gaps in policy implementation. Decentralised systems, including solar household units, mini-grids, and hybrid solutions, constitute the most economical approach to electrification and less dependence on diesel. Attaining scale necessitates the persistent execution of policies, tariff reform, blended finance, and the enhancement of skills, while safeguarding social rights and facilitating an equitable transition for regions reliant on fossil fuels. We conclude with a strategic plan and research agenda to synchronise climate targets, investment streams, and equitable considerations in Nigeria's energy future.