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The study made an economic analysis of goat rearing among inhabitants of Ajaokuta Local Government Area of Kogi State. The study highlighted the socio economic characteristics of the respondent, described goat productivity indices, identified the reasons for rearing goat, determine the profitability of goat rearing as well as identified the determinant of the profitability of goat rearing in the study area. Structured questionnaire was used for data collection from 109respondents and analyzed with descriptive statistics, gross margin analysis and profit function. Findings showed that females (63.3%) dominated goats rearing in the study area. About 82.57% of the respondents are between 20-50 years with a mean age of 40 years and had a mean income of ?121,605.50k per annum. All the respondent (100%) reared West African Dwarf goats. Extensive management system is mostly practiced by 63.6% of the respondent. The respondents practicing semi intensive management method (36.75%) fed their goats basically with cassava leaves and peels. Goat was reared in the study area mainly to make Profit (62.94%). The study further revealed that goat rearing is profitable with a Gross Margin estimate of ?36,580.69 and a Benefit-Cost Ratio of 2.26:1. The cost of goat sold is the significant determinant of profitability in the study area. (P≤ 0.01). Goat rearing in the study area is on a small scale and requires less than ?30,000 to start the business. The author therefore recommends that the inhabitants in the area who are interested in livestock production should consider goat rearing because of its cost-benefit ratio. Key words: Goats rearing, profitability, productivity indices, gross margin, profit function