In spite of all the excitement and fuss around cloud computing technologies in recent years, it is believed that the industry has been to some extent lagging behind when it comes to the deployment of cloud technologies and migration from legacy Information Technology (IT) infrastructure. This research aims to investigate the influential factors that impact the adoption of cloud-based technologies by various organizations. More specifically, this research focuses on the behaviour of Small and Medium Enterprises (SMEs) rather than larger organizations. Cloud computing, a technology that is made possible through virtualization within networks, represents a shift from the traditional owners of infrastructure and other resources by the distinct organization to a more scalable pattern in which computer resources are rented online to organizations on either as a pay-as-you-use basis or by subscription. The researcher is motivated to undertake this study due to cloud computing growing awareness which has led to the increasing adoption of the technology by organizations in Nigeria. This work is carried out to investigate the benefits and Challenges of cloud computing adoption in Nigeria Educational System using National Open University of Nigeria (NOUN) as a Case study while assessing the enormous benefits that organizations stand to gain by adopting the technology. To ascertain this objective, the researcher harnessed the use of a structured questionnaire which was administered on some IT staffs and Directors of NOUN centres in Abuja and retrieved same for analysis and scientific testing in order to validate the veracity or otherwise of the postulated research questions. Findings revealed that directors and IT Officers are aware of cloud computing and its associated technologies and that there are lots of benefits such low cost, availability, shareability among others derived from cloud computing. The study further revealed the challenges of the cloud to include privacy, security and among others. Consequently, it was recommended among others that the unreliability of power supply in the country needs to be taken seriously and resolved as soon as possible. This is because electricity is essential especially in the running of data centres, there should be intensified awareness creation by cloud service providers geared at sensitizing the public on the benefits and risks of cloud adoption by organizations in Nigeria, More cloud service providers are needed in the country to encourage competition which will result to the driving down of the cost of its services. This would make the technology more appealing to organizations and cloud providers in Nigeria should be able to provide free trials of their services to their targeted organizations at a stipulated period of time to encourage them to adopt the technology.