This paper examines the green economy framework and its challenges to sustainable growth and development of the Nigerian economy. Adopting the political economy approach, the study explores relevant concepts, identifying the core meaning of the concept of sustainable development and green economy. Few sectors were analysed in terms of green growth policies to see what economic benefits Nigeria stands to gain if transiting into the green economy. The study revealed that the green economy holds a lot of opportunities especially for those sectors studied. Recommendations to enable Nigeria transit into green economy includes that institutional capacity is needed to integrate environmental policies with economic policies among others will help Nigeria transit into green economy.