It is observed that Nigeria is one of the world’s largest producers of petroleum products; it tends to focus on exports and has huge reserves. The economy of the country is based on oil, almost accounting for more than 40% of the total GDP. The country is also known for being one of the most rapidly emerging economies in the world. That is the reason many telecommunication companies have set their head offices in a similar region. The financial sector of the country is quite strong, which tends to support the business environment in the region. The country has also known for its agricultural production. Despite the availabilities of these elements, the country is facing huge difficulties in terms of the energy crisis.

Today’s high energy prices, and level of the decadence of the Nigerian power sector; combined with concerns about future carbon taxes and emission restrictions by the United Nations and World Health Organisation make Renewable Energy very attractive and potent. Moreover, only certain Renewable Sources can provide electricity at a fixed price for the next twenty (20) years and it is cheaper than other forms of energy.

The present condition of the Nigerian power sector is known to be at a very high level of decadence, disorganization, and inadequate cooperation among staff. All these have led to very low and insignificant output in the sector. A very low and inadequate income generated from the sector has brought about a very low level of appreciation and respect for the sector. The Nigerian power sector has no potential for reduction of greenhouse emissions i.e. the sector is not venturing into new developments of alternative energy thereby leaving no potential for the nation to tap into the benefits of the carbon credit market which is very profitable in the long term.