Abstract: The study investigated the costs and returns on modern beekeeping for honey production in Ekiti State, Nigeria. Also, the problems affecting the production of honey under the modern systems were examined. One hundred respondents were randomly selected from four Local Government Areas (LGAs) of the state. With the aid of structured questionnaire, data were collected. Descriptive statistics and budgetary analysis were used to analyse the data collected. Descriptive analyses revealed that majority (60%) of the respondents were young apiculturists. They were in the age bracket 40 years and below. All the randomly selected respondents were men and educated with about 46% of them graduates of tertiary institutions. Most of them did not have experience, with just 5 years or less, in beekeeping. Seventy five percent of the respondents were members of Beekeepers Association of Nigeria. The major sources of information on beekeeping in the study area were fellow beekeepers, (80%), Beekeepers Association of Nigeria (BAN) (35%), textbooks/journal (25%) and extension agents (10%). Eighty seven percent operated the business on part time and 83% used TopBar hives to rear honey bees. The beekeepers were faced with problems such as, bush burning, lack of capital, lack of technical assistance and so on. Budgetary analysis revealed that the variable costs were responsible for about 70% of the total costs. Net revenues realised per hive per harvest were 11279.21 and 5393.25 for Langstroth and ToBar hives, respectively. Langstroth method of beekeeping is more profitable and the use should be encouraged. Also, recommendations were made to encourage other potential beekeepers.