Abstract: The study assessed the yield and profitability of Industrial Shrimp Fishery in Nigeria. The study was carried out between January 2002 and December 2003 using data obtained from shrimp investors and government administrators in the Federal Department of Fisheries (FDF) in Lagos and Abuja and the Federal Inland Revenue Service (FIRS). Structured questionnaires were administered for the collection of primary data from companies licensed to shrimp in Nigeria. Out of a total of 32 companies with 216 vessels licensed to shrimp in 2001, 17 companies (53%) owning 139 vessels were randomly selected. Secondary data were obtained from FDF and FIRS. Maximum Sustainable Yield (MSY) was estimated using the Fox Model. Net Present Value (NPV) and Benefit-Cost-Ratio (BCR) were used to determine the profitability index. On average, an estimated profit per industrial vessel was N 9,843,265.00 per annum and the economic evaluation of the industry showed a BCR of 1.2 with a corresponding NPV of N 4,483,870.00. Average landing per vessel was 44,027.69 kg. Estimation of maximum sustainable yield revealed that MSY was at 12,191 kg per annum per vessel and the corresponding effort was 89 vessels. This study revealed that shrimp operations by industrial vessels in Nigeria are a highly profitable venture but there is also a high level of overfishing, therefore the government needs to take serious measures to reduce fishing operations in order to sustain the shrimp industry in Nigeria.