The constitutional provisions for education and the place of educational financing, all over the world, fall within the framework of the legal order. In Nigeria, financing of higher education has evoked dramatic, as well as ideological and political confrontations in the last two decades or so. The rationale sustaining this argument is compelling. A quality education, beginning with primary education, is fundamental to endow individuals with the capacity to successfully pursue their private goals, while at the same time equipping them with the knowledge and skills, as well as the values and attitudes, necessary to contribute effectively to the economic, social, and political development of their societies. All these require adequate financing of education at all levels. However, of all the problems facing Nigerian educational system today, none is more agonising and persistent as the dwindling financing of education, especially at the tertiary level. This paper, therefore, examines the weakness of higher education institutions (HEIs) in Nigeria in terms of their financial resource base. The paper relies on primary and secondary data to highlight inadequate funding as the primary factor in the myriads of challenges that have crippled HEIs from achieving their goals. The paper suggests methods of increasing the financial strength of these institutions towards improving the quality of higher education in Nigeria.