In view of anthropogenic climatic pressures, the metamorphosis to sustainable alternatives in the transport fuel sector require further development. Biodiesel produced from palm oil is an interesting alternative. Nigeria has unified with others globally in supporting biofuels (biodiesel). This research is based on literature reviews of articles and relevant data bases of FAOSTAT, Nigerian Bureau of statistics and some international databases, which focus on the topic. However, biodiesel development in Nigeria is still at the early stages, this master thesis investigates the following issues among others: the readiness for producing palm oil to be utilized as feedstock for biodiesel, the different co-products that can be generated from the utilization of remnant streams to add value to the production process hence incorporating the circular economy principle and the driving forces such as requirements, concerns and challenges that exists in the nation that should be improved to foster biodiesel implementation and advancement. The procedure that can be adopted to secure a balance in both food and feedstock sustainably, the assessment of fossil diesel utilization as a bedrock for implementing biodiesel as a means of determining the market opportunity to meet the goals recommended under the Nigerian (biofuel) biodiesel program and stimulus. Biofuels (biodiesel) implementation in Nigeria is in the second phase, whereby the infrastructure for promoting biofuels (biodiesel) production is set down. Nigeria’s entrance into the biofuels (biodiesel) sphere globally, will afford it to handle two major energy batons, specifically as a crude oil rich country as well as a biofuels (biodiesel) producing nation. The objectives of unifying with other countries in the implementation of biofuels (biodiesel) production and development consists of the following advantages: environmental, economic, and social gains. The advancement of biofuels (palm biodiesel) in Nigeria must be predicated on the capability of blending petroleum diesel, the availability of the necessary feedstock (palm oil) and a suitable environment for the production nationally. Palm oil is a product of oil palm and a vital domestic industrial product that is utilized for diverse purposes. Preceding the discovery of crude oil in Nigeria in 1957, the Nigerian economy in the 1950s till the middle of 1960s was the biggest producer of palm oil globally. With the discovery of crude oil came the shift of the economic attention from agriculture to the exploitation of crude oil. There is a growing need for the diversification of the economy with emphasis on the revitalization of the palm oil sector. In developing countries like Nigeria, Palm oil production delves into new economic opportunities for most people living in rural communities. The cultivation of oil palm and milling of palm oil contributes extensively to job creation and investment opportunities for people. Oil palm biomass is a cheap source of feedstock for palm biodiesel in comparison to alternative feedstocks utilized to produce biodiesel. The production of biodiesel from palm oil and palm fatty acid distillate (PFAD) have been found to be economically feasible when compared to fossil diesel and biodiesel derived from alternative oils. Notwithstanding the advantages of palm biodiesel, they also bring about negative socio-economic impact to society. The literature review and databases employed in this study therefore, explore to some extent, the Nigerian capacity to produce palm oil as a feedstock, the utilization of residues obtained from the production pipelines to valorise the process thereby incorporating the circular economy principle as well as the amount of petroleum diesel consumed by the populace which indicates a viable market for the implementation of biodiesel.