Computer-Based Assessment (CBA) is an emerging approach in Nigeria’s educational system, involving the administration and completion of tests and examinations via computers rather than traditional paper-based methods. Although its adoption is limited, some tertiary institutions have begun using CBA for student assessments. This study examines the prospects and challenges of implementing CBA in tertiary institutions in Nigeria. Guided by three research questions and hypotheses, the study employed descriptive and analytical designs using an 18-item Likert-scale instrument (SPCBA) with a reliability coefficient of 0.73. The sample comprised 68 lecturers from the School of General Studies and 32 ICT staff of Imo State Polytechnic, Umuagwo. Findings reveal that while CBA has the potential to revolutionize assessment practices, several challenges hinder its widespread adoption, including technical limitations, infrastructure deficits, and staff preparedness. Based on these findings, the study recommends strategic measures for institutions and examining bodies to enhance the effective implementation of CBA, thereby improving the efficiency and accuracy of student assessments.