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Access to clean modern energy services is an enormous challenge facing the African continent because energy is fundamental for socioeconomic development and poverty eradication. Today, 60% to 70% of the Nigerian population does not have access to electricity. There is no doubt that the present power crisis afflicting Nigeria will persist unless the government diversifies the energy sources in domestic, commercial, and industrial sectors and adopts new available technologies to reduce energy wastages and to save cost. This review examines a set of energy policy interventions, which can make a major contribution to the sustainable economic, environmental, and social development of Africa's most populated country, Nigeria. Energy efficiency leads to important social benefits, such as reducing the energy bills for poor households. From an economic point of view, implementing the country's renewable energy target will have significant costs, but these can partly be offset by selling carbon credits according to the rules of the ‘Clean Development Mechanism’ agreed some 10 years ago, which will result in indirect health benefits. Nigeria could benefit from the targeted interventions that would reduce the local air pollution and help the country to tackle greenhouse gas emissions. Many factors that need to be considered and appropriately addressed in the shift to its sustainable energy future are examined in this article. These include a full exploitation and promotion of renewable energy resources, energy efficiency practices, as well as the application of energy conservation measures in various sectors such as in the construction of industrial, residential, and office buildings, in transportation, etc.