Abstract: Goat is the most frequently consumed meat in the world. Meat goat production is growing because of goats’ economic value as efficient converters of low-quality forages into quality meat, milk and hides products for many speciality type markets. A lot of research works have been done on indigenous small ruminant in tropical areas of Africa but limited information is available on the profitability of small-scale goat production in Nigeria. This study thus examined the costs and returns to goat production and analyse constraints associated with the enterprise. The study used a structural questionnaire administered on 60 goat farmers selected during 2010 production season using a three stage multistage sampling procedure. The data collected were analysed using descriptive statistics and budgetary technique. Budgetary analysis revealed that the gross margin was 324,668 and net profit was 315,818 (, Nigerian Currency, 160 = 1$US) indicating that goat production was profitable. Major production constraints were lack of access to credit facilities, disease outbreak, mortality and poor foundation stock. These constraints if addressed would improve productivity and profitability of goat production under tropical conditions.