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Every activity that is being done and carried out in the library is aimed at delivering services to the users and the community that is hosting the library. The services that libraries render cannot be overemphasized especially the Academic library. Their advantages are numerous and help towards the growth and development of the society. Libraries have continued to evolve since its operation, and the emergence of Information and Communication Technologies (ICTs) has changed alot about librarianship all over the world. Many new concepts are being introduced, yet, not without their challenges and prospects. No academic library is devoid of challenges; these challenges can make or mar the potentials that academic libraries offer if not properly managed. This paper traced the challenges and prospects of library and Information Services in Academic libraries in Nigeria. It started from the period of pre-colonial era, colonial era, independence era, post independence era and the 21st century era. This study also identified the origin of Library and Information Services (LIS) in Nigeria, the stages of development of LIS in Nigeria, and the prospects that Library and Information Services have in Nigeria.