In Nigeria, the adoption of sustainable biomass for energy generation is on the rise. One crucial factor that affects the efficiency of Biomass utilization is the moisture content. This study investigates the economic impact of moisture at different stages of the wood biomass distribution chain, considering the entire chain. The methodology employed includes a comprehensive literature review, interviews, and economic calculations. By analyzing these factors, this research aims to provide valuable insights into the economics of moisture in wood biomass, contributing to the sustainable development of the Biomass energy sector in Nigeria. Based on the outcomes of this investigation, it has been discovered that the costs associated with moisture content in Nigeria amount to approximately ₦500,000,00 (Five Hundred Thousand Naira only). Utilizing wood Biomass with a moisture content of 32% weight, as opposed to 18% weight, has proven to be more costly. Transportation contributes to a significant portion of this increase, while the reduction in burning efficiency accounts for the remaining half. To further elaborate on these findings, it is crucial to understand that the transportation costs are impacted by the additional weight and volume of biomass with higher moisture content. This necessitates the use of more fuel and resources during transportation, resulting in increased expenses. Additionally, the decreased burning efficiency associated with higher moisture content poses a challenge. It leads to reduced energy output and increased fuel consumption, ultimately impacting the overall economic viability of wood biomass as an energy source. By identifying these factors, this study aims to provide insights into the economic implications of moisture content in the wood biomass distribution chain in Nigeria. These findings can serve as a basis for developing strategies to optimize the use of biomass, reduce costs, and enhance the sustainability of the energy generation process. One of the most convenient and cost-effective solutions to reduce transportation expenses and improve combustion efficiency is through planned air drying of wood biomass. Large-scale power plants typically prefer utilizing wood biomass that has undergone air drying, resulting in a moisture content ranging from 18% to 36% by weight. By implementing planned air-drying techniques, the moisture content of wood biomass can be significantly reduced, thereby decreasing transportation costs. As the biomass becomes lighter and less bulky, transportation requirements are optimized, leading to enhanced efficiency and reduced expenses. Moreover, air-dried wood biomass offers improved combustion characteristics. The reduced moisture content allows for better heat transfer during the combustion process, resulting in higher energy output and increased fuel efficiency. This not only improves the overall economics of utilizing wood biomass but also contributes to a more sustainable and environmentally friendly energy generation system. The application of planned air drying in the wood biomass distribution chain in Nigeria can serve as a practical solution to address the economic challenges associated with moisture content. By adopting this approach, stakeholders can maximize the potential of wood biomass as a renewable energy resource while minimizing costs and promoting sustainable practices.