The main objective of the study is to examine the impact of agricultural extension in poverty reduction. The study focuses on the incidence of poverty, theoretical background of agriculture extension, and some significant factors that could improve the efficiency of agricultural extension. It is evident that most of the poverty alleviation policies in Nigeria are directed towards agriculture in rural areas, as vast human resources in Nigeria are under the plow. To meet the needs of the growing population, Nigeria needs to adopt new techniques/methods for rapid agricultural development. Besides, this study also prescribes some necessary steps to develop agricultural extension in order to increase agricultural production and eventually to minimize the high level of poverty in Nigeria.