This study examines the renewable energy transition in Nigeria with particular emphasis on public perception, community engagement, and strategies for achieving sustainable economic development. Using a mixed-methods research design, quantitative data were collected from 300 respondents through structured questionnaires and complemented with qualitative insights from key stakeholder interviews and focus group discussions. Descriptive statistics and econometric techniques, including Ordinary Least Squares and logistic regression models, were employed to assess the economic impacts of renewable energy adoption and to identify key determinants influencing adoption decisions. The findings reveal that renewable energy adoption has a statistically significant positive effect on economic outcomes, including job creation, energy cost savings, and local economic development. The results further indicate that public awareness, income levels, access to financing, and policy support significantly influence the likelihood of renewable energy adoption, with access to finance emerging as the most critical factor. Despite strong recognition of renewable energy’s benefits, challenges related to affordability, limited financing options, and uneven public awareness persist, particularly in rural communities. The study concludes that renewable energy can serve as a practical pathway to sustainable economic development in Nigeria when supported by coherent policy frameworks, inclusive financing mechanisms, and active community participation. The findings provide valuable policy-relevant insights for accelerating Nigeria’s transition toward a resilient and sustainable energy future.