Subjective Wellbeing, implying an evaluation of one’s life has recently received intellectual attention, especially in developed countries. Measuring this concept entails both an effective and cognitive evaluation of life. Life satisfaction plays a vital role in positive life outcomes as a key part of the cognitive component of subjective wellbeing. Various factors could determine the current state of wellbeing on an individual. Leveraging on one of the surveys that collect data on subjective wellbeing in Nigeria, we examined the determinants of life satisfaction among youths in Nigeria, with a concentration on the demographic and psychosocial factors. Multiple Indicator Cluster Survey (MICS) data for Nigeria (n = 18,454) was analyzed using chi-square tests and binomial logistic regression in Stata 14. The result showed that gender, residence, and region significantly determined life satisfaction. For psychosocial factors influencing life satisfaction; health, family life satisfaction, friendship, treatment by others, and perceived improvement in comparison to last year, significantly determine life satisfaction. Specifically, male resident in rural areas of Nigeria were more likely to report satisfaction with life. Further, youths that reported satisfaction with family life were more likely to be satisfied with life in general, while satisfaction with health, friendships, treatment by others, and improved condition from last year influenced satisfaction with life. In conclusion, it has been shown that beyond the socio-demographic factors, psychosocial determinants play vital roles in determining life satisfaction among youths. It is therefore imperative that government agencies consider policies and interventions that address psychosocial support for youths in Nigeria.