The paper investigated the effect of teacher self-efficacy enhancement and school location on students' achievement in Economics in Senior Secondary School in Ibadan Metropolis of Oyo State, Nigeria. Three hypotheses were tested at 0.05 level of significance. Multi-stage sampling technique was adopted in the study. Four Local Government Areas (two urban and two rural) out of the eleven Local Government Area Councils in Ibadan were randomly selected. Sixty schools (30 in urban and 30 in rural) were randomly chosen from the Local Govts selected, subsequently 60 SS Economics teachers (30 in urban and 30 in rural) whose classes were used as intact class were involved in the study. Two instruments namely: Teachers Self-Efficacy Enhancement Scale (TSES) and Economics Achievement Test (EAT) were used to generate data for the study. The Reliability coefficients of the instruments were 0.79 and 0.74 respectively. One treatment package (Teacher Self-efficacy Enhancement Package) was developed and used to enhance the self-efficacy of the teachers. Some of the findings were: teacher self-efficacy enhancement had significant main effect on students' achievement in Economics, school location also had significant main effect on students' achievement in Economics, while teacher self-efficacy enhancement and school location had no significant interaction effects on students' achievement in Economics. It was recommended that teachers should be exposed to self-efficacy enhancement program to enable them imbibe the spirit of self-efficacy in carrying out their assignments. Furthermore, teachers should be made to understand and accept the fact that their students can perform excellently in their academic work regardless of their school location if they develop in themselves a high level of self-efficacy.