Power is needed for the growth and development of any country. The Nigerian power sector continues to face tremendous challenges, especially in the areas of power generation and sustainability in the electricity value chain. Successive governments have carried out several reforms, but these problems persist. The major causes are tied to the lack of diversity in the country’s energy mix and over-dependence on non-renewable fossil fuels for power generation. With Nigeria’s growing power demand and the Federal Government’s commitment to renewable energy for reduced carbon emission, the potential of biomass in power generation can no longer be overlooked. Biomass is a renewable resource that is abundant in supply in Nigeria. Biomass resources can be obtained from multiple sources and has very low net carbon emission. Its immediate addition to Nigeria’s energy mix would aid the country in meeting its 2030 goal of increasing renewable power generation by 45% and reducing greenhouse emissions by 20%. This paper therefore studies the history of power generation in Nigeria and the challenges encountered so far. It then looks at biomass resources availability in the country, their viability as feedstocks for power generation, and biomass-to-power conversion processes. The challenges of this alternative power solution are identified and recommendations given. If these can be implemented, the biomass-to-power solution can significantly address the issues of low power generation and carbon emission. It would help improve energy security, environmental sustainability, circular economy, and economic opportunities for those in the biomass and power supply chain in Nigeria.