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There is a huge renewable potential found in Nigeria which is yet to be explored. The heavy reliance on fossil fuels such as crude oil for its energy production has made it a top contributor to greenhouse gases up to 1.01% of global emissions. Pertinent efforts have been placed on exploring renewable energy sources given the increased awareness of its sustainability. Furthermore, indicators suggest that crude oil will become a much less significant driver of the energy sector in the coming years. In the light of these issues, this paper presents the potentials that renewable energy has to offer, challenges that could limit its exploitation, and the current status of energy initiatives, including the decade-old renewable energy master plan. Meanwhile, we also discuss the benefits of adopting renewable energy technologies for urban and rural communities. In conclusion, the adverse effect of the exploitation of fossil fuels on the environment, including global warming, glacial meltdown, and acid rain, can be mitigated. Overall, the carbon footprint can be reduced if the potentials are appropriately utilized and converted into an accessible and affordable energy source. Although renewable energy projects have a high initial cost of running over a long life, the cost is small or no compared to conventional sources. The authors recommend the need to explore alternative energy sources that will be environmentally friendly and meet present energy demands.