The energy need in Nigeria is increasing rapidly, both in urban and rural sectors, as a result of rapid industrialisation and agricultural development. Though natural resources like coal, gas, hydropower, forestry, oil, etc., are available in Nigeria, energy production and the economy are, at present, largely dependent on oil. To reduce this dependence and to meet the growing energy demand, alternative sources of energy can play an important role in Nigeria. With this view, detailed analysis has been made in this paper on available energy resources in Nigeria. Based on the available data, the present situation with regard to proven resources, undiscovered estimated resources and the total projected resources in this country have been calculated. The energy demand and supply pattern have also been evaluated. Out of the different alternative sources of energy, use of solar energy through the photovoltaic power system seems to be quite attractive in meeting the energy demand in the real rural sector. In this context, an analysis has been made to estimate the different components of the photovoltaic power system for rural development in Nigeria. Three different approaches, viz. integrated centralised, discrete decentralised and roof-top approaches, have been considered. Finally, The social impact of such systems in Nigeria has also been discussed.