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Distance Education as an alternative to the traditional face-to-face education has been seen as the teaching-learning process in which students are separated from the teachers by a physical distance, which is often bridged by modern communication. It comprises all patterns of student-centered learning process in which the teacher has limited role. In Nigeria, Africa, the introduction of this form of learning programme, is relatively new and therefore pose some challenges to all stakeholders in the education industry. In trying to meet up with the enormous demands for formal education, Nigerian government established some institutions for distance learning. These included the National Teachers Institute (NTI), the National Open University (NOUN) among others. This paper therefore, examined the historical development of this programme and particularly in Nigeria, the theories and philosophies of distance education, the challenges and prospects of the programme in the country.