Assessing soil compaction using soil bulk density as an index for measurement could provide background information on the critical range of soil compaction for groundnut production in Nigeria. Therefore, field experiments were conducted in 2012 (year 1) and 2014 (year 2) to assess the effects of five levels of soil compaction (1.1 Mg m−3 [control], 1.2, 1.3, 1.4, and 1.5 Mg m−3) on groundnut yield. The experiment was laid in completely randomized design with four replicates. Number of Pods (NP) and Fresh Pod Mass (FPM) of groundnut were estimated using standard procedures and subjected to ANOVA at α 0.05. The NP of groundnut differed significantly among the treatments and was reduced by 70.1 and 76.0% in 1.4 and 1.5 Mg m−3 relative to 1.1 Mg m−3 in year 1, while corresponding low values were 40.4% (1.4 Mg m−3) and 48.4% (1.5 Mg m−3) in year 2. It was noteworthy that the NP in 1.2 and 1.3 Mg m−3 were statistically similar. Consequently, FPM of groundnut was in the order of 1.1 > 1.3 > 1.2 > 1.4 > 1.5 Mg m−3 in years 1 and 2, respectively. Hence, soil compaction at 1.1–1.3 Mg m−3 could be critical for groundnut cultivation.