In this paper, the impacts of the location of a thermal source on buoyant convection of nanofluids in an annular region are analyzed numerically through the finite volume technique. Five different thermal source positions along the inner cylinder of the annulus have been analyzed. The prime objective is to identify the optimal position of the source to maximize or minimize the thermal transport at different values of Ra and diverse volume fractions of the nanoparticle ranging from 0 to 10%. The location of the thermal source has a profound impact on the flow and temperature patterns as well as thermal transfer from the discrete source to the nanofluid. Further, the volume fraction of nanoparticles also controls the heat transport in the annular geometry.