Abstract. The present investigation was carried out to evaluate the effect of different growth conditions on lipase production by Aspegillus niger. The extracellular lipase producing fungus was isolated from spent bleaching earths. Optimizations of physical and chemical parameters were done for maximum lipase production using this isolate. Growth of the organism and lipase production were measured usig varying pH (4 -9), incubation temperature (20 -30 °C), incubation time (8 -80 hrs.), carbon sources, nitrogen sources, and shaking speed. Enhanced lipase production was observed at 24 °C, pH 7 and after 72hrs of incubation. Olive oil 5 % was observed as the most effective carbon source and Yeast extract 1.0 % as the most effective nitrogen source for lipase production. The optimum shaking value to get maximum lipase activity by Aspergillus niger was 200 rpm.