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Electricity is the prime mover that drives the economic development of every country and any nation that desires to develop will ignore the power sector to its peril. Any nation whose energy need is epileptic in supply, prolongs her development and risks losing potential investors. The greatest engineering challenge in Nigeria today is the issue of the provision of steady, adequate, affordable and efficient electricity supply. This paper presents the energy situation and challenges in Nigeria and discuss about renewable energy as the way forward to ending the energy crisis in Nigeria