Abstract: The federal Government of Nigeria accorded University education high priority because of its unique role in socio-political and technological development. This study discusses the present financial predicament facing Nigerian Federal universities due to inadequate funding by the government. University education enrollment is growing astronomically as against the pace of supply of fund. Thus, the cut-back in the financial capability of the system results in the problem of university sustainability. Finance is considered the ultimate and critical determinant of the level of growth of the entire university system. It is for this reason that UNESCO recommended 26% of national budget as the minimum for funding education but this has not been adhered to in Nigeria. The study x-rays crisis and constraints faced by universities and its educational implications. The study proposes cost-caving, revenue generating and public accountability strategies as the major way-forward for the survival of Nigeria university education in a depressed economy.