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Samples of dry‐roasted groundnuts purchased from street hawkers, markets and retail shops in southwestern Nigeria were analysed for moisture content, fungal populations and aflatoxin contamination. The moisture content varied from 2.1 to 3.6 per cent, while the mould counts using the dilution plating method ranged from 2.9 × 10² to 6.3 × 10² colony‐forming units per gram in samples. Aflatoxin B₁ was found in 64.2 per cent of samples with a mean of 25.5 ppb. Aflatoxins B_2, G₁ and G₂ were detected in 26.4, 11.3 and 2.8 per cent of the samples with mean levels of 10.7, 7.2 and 8 ppb respectively in contaminated samples. It is concluded that the regular consumption of DRG by Nigerians might present potential health hazards.