Higher education has proved to be a significant medium for the socio- economic, political, and technological development of any nation. It is absolutely necessary for equipping individuals with new knowledge, skills, and attitudes. Globally higher education, especially university education is faced with a lot of challenges and difficulties relating to access, funding, staff development, quality of teaching and research, and the challenge of new technologies. A critical issue facing Nigeria is how to increase access to university education to cater for the increasing number of students completing secondary education, diploma holders, and others who desire university education. In order to provide access to all citizens, the Federal Government established the National Open University by an Act of 1983. After being suspended for sixteen years it was re-opened under a new name as the National Open University of Nigeria (NOUN) in 2002. This paper examines open and distance learning at the National Open University of Nigeria (NOUN), and the role it plays in enhancing access to univesity education for personal, community and national development. It analyzes the challenges facing NOUN and proffers suggestions for addressing the challenges.