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This study was to find out the prospects and challenges of online radio broadcast stations in Nigeria. The study was guided by five research objectives. The study employed a survey method, questionnaire in addition to library research were applied in order to collect data. Primary and secondary were used and data were analyzed using a statistical package which was presented in frequency, tables and percentage. Out of 230 respondents, the findings revealed that there are so many prospects of online radio such as informing, entertaining and educating the masses. It was also revealed that there are challenges of personnel, equipment, power supply, lack of support from the government towards online broadcasting. The study therefore recommends that the government as well as management of online radio broadcasting should take the operations of online broadcasting seriously in order to achieve its entertainment, information and education functions. The study also recommends that challenges confronting online broadcasting should be curtailed.