This paper examines Nigerian university system in relation to manpower development in a rapidly changing world of work. This is for purposes of identifying areas that need urgent attention in order to reposition the system to produce high quality manpower. The study reveals that the expansion in the university system is characterized by a mixed bag of limited success, and continuing challenges. For Nigerian university to fulfill its objective effectively, the system needs to be systematically planned in order to produce graduates that are versatile enough to acquire competitive positions as well as generate their own employment.