This study explores the transformative potential of Industrial Design innovations, skills, theories, principles and methodologies, in advancing the circular economy within the built environment, with emphasis on Nigeria. A narrative literature review methodology was adopted. Emphasising their roles in driving efficiency, sustainability, and adaptability, Industrial Design principles, innovations, skills, theories, and/or methodologies are examined in relation to their contributions to enhancing flexibility, reducing developmental or construction timelines, and promoting resource efficiency as well as environmental aesthetics and stewardship. The study’s outcomes show that Industrial Design plays key roles in the promotion of circular economy through material efficiency and optimisation, disassembly and reuse, resource recovery and recycling, user centric design and community engagement, persuasive designs in the built environment as well as in the conversion of wastes to usable materials, aesthetic components and equipment. As urbanisation advances and environmental degradation worsens in Nigeria, this study underscores the relevance and impact of Industrial Design (as a field of design practice) in fostering innovative solutions for the wellbeing of both the present and future generations. The research advocates for the integration of multidisciplinary design teams and a holistic approach to design, empowering professionals to create sustainable and thriving communities. It, among others, recommends that greater recognition be accorded the roles of Industrial Designers and other environment-related professions in advancing circular economy and sustainability in the built environment.