Encapsulated Aspergillus niger was prepared in order to inspect the effect of oxygen supply on the production of citric acid. A. niger cells which had been immobilized in the calcium alginate capsule grew and mycellia penetrated through the capsule membrane after two days of cultivation and covered over all of the capsule after eight days. The mycellia became loose when the nitrogen source was sufficient of oxygen was deficient. The larger amount of encapsulated cells were put into a given growth medium, the smaller quantity of citric acid was produced. The increase of volumetric oxygen transfer coefficient from 1.8 $hr^-$ to 2.55 $hr^-$ in the flask culture accelerated cell growth rate but did not influence the production of citric acid. The high oxygen supply rate($k_La:;150;hr^-$) in the concentric air lift reactor hastened the growth of cells and hindered the production of the citric acid. The reduction of nitrogen source level in the growth medium in the concentric air lift reactor increased citric acid production by 40 percent of that of flask cultivation and the culture period was shortened by 3 days. The variation of the geometry of the concentric air lift reactor did not influence the growth rate of encapsulated cells and production rate of citric acid.