The energy sector of Nigeria’s economy constitutes a critical challenge. This sector has defied all efforts for its reform and restoration largely due to ineffective and poor policy implementation. In the 20th century, oil was the main driving force in global geopolitics and the main force behind massive industrialization. However, oil is moving in a downward trend. In its place will be an array of technologies, in the form of alternative energies with long term prospects. The standard of living of a given country can be directly related to per capita energy consumption but energy crisis is on the increase due to population and improved standard of living especially in developing cities. The aim of the study is to identify alternative energy potentials for Nigeria in view of her current energy challenges. The methodology applied in this study include case studies and review of existing literature on the subject. Identified energy crises include, incessant power outage, shortage and scarcity of petroleum products, high electricity bill, vandalization of pipelines and oil installations. The paper discussed the energy crises in Nigeria, the potentials of alternative energy technologies, and the challenges of its development for Nigerian cities and recommends that renewable energy and energy efficiency are necessary factors to achieve sustainable development in Nigeria.