Abstract: This study reviewed the available literature on the economic impact of the Bird Flu epidemic on the Nigerian poultry industry. It was noted that the Avian Bird Flu is an infection of poultry caused by an influenza A virus of the H5 or H7 subtypes, and that several different strains of the virus have been shown to infect humans. Avian bird flu caused by influenza A viruses can affect a variety of domestic and wild bird species. A perspective on the Nigerian poultry revealed the population of birds in the poultry industry in the country is about 140 million and the industry contributes about 9% to the country`s GDP. However, the industry has witnessed lots of ups and downs as a result of favourable and unfavourable government policies, and shocks from disease epidemic climaxed by the deadly bird flu. With the detection of the virus H5N1 in the northern part of Kaduna and its spread to 13 of Nigeria`s 36 states as well as the Federal Capital Territory (FCT) Abuja, the Federal Government was able to form a Technical Committee of Experts for the prevention and control of HPA 1 in Nigeria, among other key strategies. The impact of the Avian Bird Flu epidemic could be classified to two: Financial impact and derived economic impact. The financial impact were essential colossal financial losses with respect to Government losses/expenditures in terms of prevention and control expenditures and compensations to farms farmers and agro-institutions/establishment`s. It also include losses to individuals. Farms and other stakeholders in financial terms. Derived economic impact were identified as negative or positive. Negative economic impact encompasses the psychological, social, political and environmental impacts of the epidemic. Positive derived economic impact include the strengthening of institution`s, capacity building of personnel and intensified research in response to the outbreak of the avian bird flu epidemic in February, 2006. In order to contain the avian flu in the future, it is recommended that veterinary services should be adequately staffed with adequate budget provision as well as establishment of more well equipped veterinary research institutes and laboratories. It is also recommended that all poultry industries should be registered for effective communication, enforcement of international guidelines and standards on avian flu prevention and control as well provision of capacity building and facilities.