PurposeThe purpose of this paper is to make a preliminary analysis of the potentials for the adoption of biofuels in Nigeria. This initial analysis aims to capture some of the possibilities in the adoption of biofuel and the promotion of the cultivation of energy crops and processing of biofuels in Nigeria. Taking a step towards biofuel adoption is crucial for Nigeria to remain an important player in the world energy market, as there is a shift in global fossil fuel consumption.Design/methodology/approachThe study adopted a desk review of existing literatures on global biofuels production potentials. A synthesis of data from the Food and Agriculture Organization (FAO) secondary database on major energy crops production was also conducted, while the GIS map was generated from GIS data sourced from the International Institute of Tropical Agriculture, Ibadan, Nigeria.FindingsNigeria has immense potential for energy crops cultivation and the production of bioethanol and biodiesel. The existing database shows that Nigeria ranks very high in terms of production of the major energy crops such as soybean, palm oil, sesame and cassava. The rainfall distribution shows that most energy crops can be grown all over Nigeria. Nigeria has the capacity to be a leading exporter of biofuels. The adoption of biofuels can also ease the financial strain relating to the heavy burden of fossil fuel subsidy and also enhance local livelihoods within the production chains.Practical implicationsWith the very high potential for biofuel production, the Government as well as private investors should take steps towards investing in agriculture for the production of energy crops and the establishment of biofuel‐processing plants in Nigeria.Originality/valueThe paper is a preliminary analysis of bio‐economic and environmental modeling of the adoption of biofuels in the energy sector in Nigeria. This analysis has opened up the focus of the bigger study, modeling the biological, economic, environmental and other impacts of biofuel adoption.