The quest for biofuels in Nigeria, no doubt, represents a legitimate ambition. This is so because the focus on biofuel production has assumed a global dimension, and the benefits that may accrue from such effort may turn out to be enormous if the preconditions are adequately satisfied. As a member of the global community, it has become exigent for Nigeria to explore other potential means of bettering her already impoverished economy. Biomass is the major energy source in Nigeria, contributing about 78% of Nigeria's primary energy supply. In this paper, a comprehensive review of the potential of biomass resources and biofuel production in Nigeria is given. The study adopted a desk review of existing literatures on major energy crops produced in Nigeria. A brief description of the current biofuel developmental activities in the country is also given. A variety of biomass resources exist in the country in large quantities with opportunities for expansion. Biomass resources considered include agricultural crops, agricultural crop residues, forestry resources, municipal solid waste, and animal waste. However, the prospects of achieving this giant stride appear not to be feasible in Nigeria. Although the focus on biofuel production may be a worthwhile endeavor in view of Nigeria's development woes, the paper argues that because Nigeria is yet to adequately satisfy the preconditions for such program, the effort may be designed to fail after all. To avoid this, the government must address key areas of concern such as food insecurity, environmental crisis, and blatant corruption in all quarters. It is concluded that given the large availability of biomass resources in Nigeria, there is immense potential for biofuel production from these biomass resources. With the very high potential for biofuel production, the governments as well as private investors are therefore encouraged to take practical steps toward investing in agriculture for the production of energy crops and the establishment of biofuel-processing plants in Nigeria.