This research explored the potential of waste-to-energy (WtE) technology as a sustainable solution to Nigeria’s energy deficit and waste management challenges. Various WtE technologies were reviewed, including incineration, anaerobic digestion, gasification, and pyrolysis, highlighting their applicability and benefits for Nigeria. The potential energy yield from different waste streams, combined with economic viability, environmental benefits, and social impacts, demonstrates the importance of WtE technology for the country. The lower heating value of municipal solid waste and agricultural residue significantly affects energy yield. The incineration of 27.36 million tons of organic waste annually while using relevant technology with energy recovery could generate between 14.52 and 23.08 TWh of electricity per annum. The inclusion of paper and textiles increases the potential yield to 18.69 and 29.71 TWh per year. The potential power generation from agricultural residues is estimated at 80.3 GW. However, Nigeria must address technical, economic, and policy challenges to realize this potential. This can be achieved by developing a robust regulatory framework, fostering public–private partnerships, enhancing local capacity, engaging communities, and investing in research and development. The implementation of WtE projects will facilitate sustainable waste management, improve energy security, create jobs, and promote environmental stewardship.