The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by Nigerian University administrators. The population of the study consisted of all the 102 university administrators from the seventeen Federal Universities in Southern Nigeria. Descriptive statistics and Pearson Product Moment Correlation were used to analyze the research questions and hypotheses formulated for the study. The analysis revealed that commercial ventures were among the main sources of IGR while the proceeds were used for services including staff welfare, maintenance of facilities and beautification of the university premises. A further analysis of data showed that there was a significant relationship between internally generated resources and the management and development of universities in Southern Nigeria. It is recommended that university administrators should be more transformative in their leadership style in order to strengthen their revenue base for effectiveness in University management.