This paper examines the impact of the environment on the growth of the IT industry in Nigeria. IT development in Nigeria has not assumed the required shape and has not taken its rightful position. Its growth expectation is being suppressed by some societal vices grouped as social obstacles. These include education, social infrastructures, population, attitude of the IT professionals, state of technology and funding in the country among others. The highest enrolment in the university for Science and Technology between 1991 and 1998 per 1000 inhabitants was 0.31 while that of polytechnic stood at 0.39. The highest postgraduate degree awarded during the period was only 0.05. The implication of this is that technological development in Nigeria in some years to come may not reach an appreciable level due to inadequate manpower development. The budgetary allocation to Science and Technology between 1982 and 1990 by percentages of the total capital budgets in 1990 and 2000 stood at 1.24 and 1.11 respectively. The priority rating was 18 out of 35 items in 2000. This is too low for effective IT growth. The highest installed capacity of telephone lines to 100 inhabitants between 1992 and 1997 was 0.07 with the highest utilization of 0.36 recorded in 1996 and 1997. This implies that capacity utilization services are not within the reach of common man.