Abstract: The objective of this study was to analyze the impact of extension education on entrepreneurship development in Nigerian agriculture. To achieve this objective, the study reviewed existing literature and empirical data on the socioeconomic characteristics of farmers in Nigeria and the influence of these characteristics on the entrepreneurial capacity of farmers. It identified the economic contributions of entrepreneurship to agricultural development and also examined current extension education practice in Nigeria in relation to the development of the entrepreneurial capacity of farmers in Nigeria. The analysis indicates that most farmers in Nigeria have limited entrepreneurial (technical and managerial) capacity due to old age, illiteracy, lack of skill in agricultural production and gender related constraints. It also indicates that the primary aim of current extension education practice in Nigeria is the dissemination of information on and introduction of new and improved farm technologies to farmers without any provisions for improving the ability of these farmers to cope with the changes in production organization resulting from the introduction of the new technologies. The study posits that the object of agricultural development policies and programmes should be the development of the entrepreneurial (technical and managerially) capacity of farmers with a view to increasing their output and productivity. It contends that extension education should provide the basis for providing entrepreneurial training for farmers. Consequently, the paper recommends that the concept of extension education, relative to the agricultural development needs of Nigeria should be broadened to include entrepreneurial (technical and managerial) education.