University education has continuously deteriorated since late 1980’s due to unprecedented system expansion and enrollment explosion which drastically reduced government ability to adequately fund the system. This dissertation investigated impact of funding on quality university

 education in two selected Nigeria universities: Ahmadu Bello University, Zaria (A Federal University) andNasarawa State University, Keffi (A State university), covering the period between 2001-2009. 

The research objectives includes determining funding pattern of the two Universities; to ascertain if funding has improved the quality of teaching, research and also to ascertain if funding has actually impacted on infrastructure in the two universities. Descriptive method employing survey device, questionnaire method augmented with interview and observation techniques were used to collect data from primary and secondary sources. Spearman’s correlation analysis and chi-square were used to test the four hypotheses which are as follows: “There is no significant shortfall between fund requirement and fund provided to the two universities; training and quality manpower does not depend on government funding; for the universities ability to establish and maintain infrastructure does not depend on funding position by government; and lastly, funding is not instrumental to universities capacity to mount academic programmes”. 

The study among other things found that there is a wide gap between funds requirement and funds provided to the two universities; and also the universities ability to train quality manpower is directly related to funding provisions by government. The study recommends that should adopt a proactive investment strategy to generate funds for financing university education instead of relying heavily on government grants. Universities should also institute a system of budgeting that is performance based which would yield optimal result to the universities. Also they should collaborate with private sector for joint funding and management of services.