The analysis of stream sediments from the eastern part of Dahomey basin was adopted as a means for reconnaissance geochemical prospecting for minerals of economic importance and environmental evaluation in Agada-Duro,Agori-Odo and Asowole area Southwestern Nigeria. The study area is principally a sedimentary terrain composed of ferruginous sandstone. Geochemical data for 15 trace and nine major elements are presented. Statistical and preliminary visual interpretation of the spatial distribution pattern of As, Ni, Cu and Zn did not show any possible potential for economic mineralization or clear-cut relationship as a pathfinder to any known mineralization to be discovered in the area. Interpretations using Total Alkali versus Silica Plot and Alumina content showed that the sediments were derived from a per-aluminous to metaluminous rich rock that is acidic. Environmental evaluation of the study area was done using Index of Geoaccumulation; it was used to determine the effect of trace element distribution in the study area.