Law and development are inter-woven. The crucial role of law as a catalyst in strengthening development cannot be over-emphasised. Any law that is at par with the culture, tradition and aspiration of the people promotes development. Intangibles play a significant role in economic development thus excessive protection of intangibles inhibits growth while insufficient protection adversely affects growth. To this end, neighbouring rights in Nigeria offered legal protection to performers and expression of folklores thereby providing a legal and regulatory framework that is pivotal to rapid and sustainable development of the society. The aim of this paper is to examine the legal protection of neighbouring rights in Nigeria with the view of appraising its contribution to national development and highlight its prospects and challenges.