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The Nigerian livestock feed industry competes with other sectors for the consumption of conventional ingredients. This competition often pushes the prices of finished feed upwards. A redirection of efforts to the use of agro-byproducts has been advocated as a way of solving this problem. This study with some agro-byproducts was carried out to provide information on the use of these by-products. Changes in the nutrient compositions of some selected agro industrial byproducts on biodegradation with Trichoderma viride and their feeding value as an energy source for layers were investigated. By-products studied were brewers dried grains (BDG), rice bran (RB), palm kernel meal (PKM) and corn bran (CB). The protein in BDG, RB, PKM and CB increased by 87, 68, 32 and 61% when they were fermented with the fungi for 14 days. At the same time, the fiber in the by-products decreased by 35.00, 40.00, 36.50 and 37.50%, respectively with a corresponding increase of 49.00, 37.00, 9.00 and 5.50% in the level of soluble sugars respectively. The energy in the biodegraded by-products increased by 6.30, 5.00, 9.00 and 18.50%, respectively. In a feeding trial with layers, 50% of the maize in a standard commercial diet was replaced with biodegraded BDG, RB and PKM. Birds on the BDG and RB diets had significantly (P<0.05) higher hen day production than those on the other diets. Diets in which the biodegraded by-products replaced maize produced lower cost of egg production than the standard commercial diet. Of the test diets, BDG gave the lowest cost of US$0.38 per tray of eggs (30 eggs) compared with US$0.53 for the commercial diet. Results of the study showed that fungal biodegradation of the agro industrial by-products can enhance their nutritional status. Using such by-products to feed layers spared half of the maize in the diet and produce better laying performance.