This paper on teacher education and national development in Nigeria highlighted issues, challenges and prospects of an effective teacher education system. It examined the concept of teacher education and some of the major steps necessary for guaranteeing quality teacher education such as the importance of equipping teachers with the necessary skills and knowledge. Types of teacher education programmes in Nigeria, and the scope of teacher education was discussed. The role of the teacher in national development, aims and objectives of teacher education and prospects for enhancing the effectiveness of teacher education programme were investigated. Issues and challenges for improvement were reviewed and recommendations made for policy formulation and proper implementation at regional, state and federal levels of government. Policy makers will be expected to work alongside educators, education services providers, and the leadership in all the educational institutions to bring about the desired change in teacher education. All stakeholders must be well-informed of their respective roles and supported at every stage in order for the teacher education programmes to achieve full success. Adequate funding from the government remains one of the driving forces required for mobilizing the qualified workforce needed for the realization of the government agenda for the education sector.