In most countries of the world, higher education is highly subsidized by the public sector. The subsidy is a result of the role of higher education sector on the economy and good governance of the nations. Enrolment into higher institutions of learning is quite low in Africa compare to other continents of the world due to the continent's low and declining spending on her higher institutions of learning. This shabby contribution by the continent could be likened to a result of some imminent challenges, which ranged from inadequate financial resource due to economic and social crisis to the challenges posed by the HIV/AIDS pandemic. The contributions of Nigeria to the development of higher education in Africa is quite worthy of note. This can be affirmed by the increase in the number of states and federal universities in the country over the years since independence. This can be further reaffirmed by the promulgation of Decree 9 of 1993, which made the provision for the establishment of private universities, which further increased the nation's total number of universities to 93 from 59 and further strengthened the nations contributions to higher education development in the continent. In spite of all efforts made by the FGN (Federal Government of Nigeria), the nation is yet to reach her potential in the development of her higher education sector as the percentage of potential students that gained admission into the nation's higher institutions of learning still stand below 15% of the total number of applicants. The study therefore recommended that budgetary allocations to higher institutions of learning be increased to meet the financial demands of the institutions. In addition, multi-campus should be encouraged in order to allow for more access to higher education. (Contains 5 tables.)