The study examined the problem and prospects of newspaper circulation in Nigeria (A study of the Nigerian Tribune and Punch Newspaper). The aim of the study is to look into one of the major stages of newspaper production process in Nigeria which is circulation. The study was anchored on System Management Theory which emphasized that no unit or department is useless rather they are all important to the overall success of the media outfits. The study employed survey research method to elicit data from the respondents and one hundred respondents were drawn through non-probability sampling method. Findings show that majority of the respondents do not buy copy of a newspaper because of poor economy as a copy is sold for N200. Also, free readers also affect the numbers of copy circulated apart from decline in reading habit of students. Majority of the respondents partially agreed that online newspaper may end newspaper circulation in Nigeria. It is recommended that government should increase the salary of workers so that majority of them can afford buying at least a copy of a newspaper everyday. Job should be provided for the millions of unemployed to improve the standard of living of Nigerians this can change their buying habit.