The issue of underfunding of university education in Nigeria is a recurring one and cannot be glossed over. Under funding is viewed as bane of qualitative university education in Nigeria. This paper highlights the trend in establishment and funding of universities nothing that funding of education has remained one of the most challenging problems of universities and the government. It described the concept of quality education, how quality education is perceived in the Nigeria context and various ways in which underfunding has impinged on the quality of university education. It concluded that underfunding has became a recurring have not been sincere in their commitment towards university education. A number of recommendations to ameliorate the situation were made amongst which are: that the government and political class should muster enough political-will and allocate at least 26% of the total budget to university education as suggested by UNESCO, use of the find allocated to the universities should be closely monitored to forestall misappropriation, allowances paid to political office holders should be received downwards as this would make more money available in government offers and that money accruing from such exercise should be channelled towards providing state-of-the-art laboratories in universities, faith based organizations be made to contribute to universities funding by paying a stipulated percentage of their income to government to augment university funding.
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