Nigeria currently produces less energy required for uninterrupted electricity supply. This situation has led to an energy crisis that is adversely affecting every sector of the economy. An exploration of energy contributions from different sources could help address the energy crisis in Nigeria. This paper aims at promoting the commercial availability of electricity from biomass in Nigeria. The biomass potentials identified include conventional crops, agricultural residues, tertiary residues; forest residues; energy crops; grasses and aquatic weeds including algae. Conversion of biomass to bioenergy can be achieved through anaerobic digestion, gasification, pyrolysis or esterification. Although the prospects are bright, challenges facing bioenergy in Nigeria, include inadequate information on feedstock; uncomprehensive research and development capacity; poor policy formulation and implementation; poor regulatory framework, poor investment climate and poor access to technology. An integrated approach is recommended to include the establishment of Nigerian Biofuel Corporation under a Public-Private Partnership (PPP) arrangement and a Nigerian Network on Bioenergy.