Abstract: The immediate introduction of coal into the Nigeria energy mix has now assumed a level of urgency occasioned by the perennial scarcity of petroleum products. The study identifies the various variables in coal demand forecast in Nigeria. The empirical findings of the study reveal that coal demand would continue to increase in Nigeria but not in appreciable quantity. The policy implications of the findings include the need to stimulate coal demand in Nigeria by initiating intensive educational campaign to raise public awareness of the benefits of using coal at the industrial and household level.