Diabetic nephropathy contributes significantly to end-stage renal disease in Nigeria. The earliest clinically detectable stage is that of microalbuminuria when interventions could halt or retard the progression to end-stage renal disease. To investigate the prevalence of microalbuminuria in newly diagnosed type 2 diabetic patients and its clinical correlates in Jos, consecutive patients with newly diagnosed type 2 diabetes attending two large hospitals in Jos were evaluated at three different occasions of monthly intervals for microalbuminuria using Micral test strips 11. Patients with proteinuria, positive nitrite test/ urine microbial culture, acute illnesses or cardiac decompensation were excluded. Out of a total of 99 patients recruited, only 65 completed the study. Microalbuminuria was present in 32(49.2%) of the patients, and was significantly associated with mean arterial pressure, systemic hypertension and diabetic retinopathy (P < 0.05). Microalbuminuria is common in newly diagnosed patients with type 2 diabetes mellitus. Our finding supports routine screening for microalbuminuria as part of the initial evaluation of these patients.