Biodiesel and other biofuels production is an important option required in Nigeria to mitigate the ongoing increased in primary energy need, greenhouse gases emissions, over dependence on oil and gas economy, high levels of urban and rural poverty and to ensure sustainable economy for rural development. This research compares the economic viability of biodiesel production from two Northern Nigerian feedstocks (groundnut and cotton seed oils) based on product quality, environmental and financial economics. Biodiesel production and comparative product quality studies were carried out experimentally while environmental and financial economics were examined based on collected data and relevant experimental outcomes. Both oils produced optimal yields (83.05% and 74.5%) of high quality biodiesel with properties of international standard, and with groundnut oil being the best. This product can be blended with different percentages of petroleum diesel and used directly in diesel engines without further modification to give optimal performance. The results of Comparative Life Cycle Assessment showed that long term biodiesel production from groundnut oil will have higher relative impacts.