Int.J.Curr.Res.Aca.Rev.2016; 4(10): 47-57 47 Introduction Background The importance of sustainable alternatives energy development has increased globally in recent years. This has led to several countries; developed and developing, instituting and mandating laws and policies to replace varying proportions of fossil based fuels consumed annually by biofuels. It is estimated that about 117 billion liters of biofuels was consumed globally in 2013 (REN21, 2014). Although the contribution from Africa is not much, most African countries are thriving to contributing to this effort (Antwi et al., 2010). In 2007, the Renewable Energy Master Plan was launched in Nigeria to provide a framework for increasing renewable energy in the country’s energy mix (Popoola et al., 2013). ABSTRACT The Biofuels Policy and Incentives of Nigeria and the Petroleum Technology Development Fund (PTDF) provide opportunities for converting waste lignocellolusic materials to bio-oil. This paper evaluates the technical challenges that confront the production of bio-oil from locally sourced materials in Nigeria using fast pyrolysis. The paper illustrates fast pyrolysis process; highlighting the different types of reactors available for the process and establishes their comparative advantages and limitations. The design of reactor, workshop for fabrication of equipment, operation, feedstock supply and improving the bio-oil quality and yield, were identified as major constraints to the production of bio-oil locally. This paper concludes that adopting a learning curve approach through research by the design, fabrication, operation and optimization of bench scale pyrolysis systems can serve as a basis to understand and solve the challenges associated with fast pyrolysis such as heat supply and heating rate, char removal, rapid vapour cooling, and vapour residence time. KEYWORDS Bio-oil, lignocellolusic, biomass, fast pyrolysis, challenges, Nigeria Production of Bio-Oil in Nigeria: Challenges and Prospects Julius C. Ahiekpor 1,2 *, Ayoade O. Kuye 3 and Osei-Wusu Achaw 2 1 World Bank Centre of Excellence, Institute of Petroleum Studies, University of Port Harcourt, Nigeria 2 Chemical Engineering Department, Kumasi Technical University, Ghana 3 Chemical Engineering Department, University of Port Harcourt, River state, Nigeria *Corresponding author International Journal of Current Research and Academic Review ISSN: 2347-3215 Volume 4 Number 10 (October-2016) pp. 47-57 Journal home page: http://www.ijcrar.com doi: http://dx.doi.org/10.20546/ijcrar.2016.410.006