The importance of funding in the delivery of quality and efficient university education cannot be overemphasized. It is against this background that this study examined the effect of funding on the efficiency and performance of Nigerian universities. Descriptive statistics and Data Envelopment Analysis (DEA) techniques were used to analyze data from 121 universities spread among four categories of owners (40 Federal, 30 States, 29 privates and 23 faith-based) in Nigeria. Data for the study were based on the year 2017 and were sourced from the Nigerian University System Statistical Digest and The State of Nigeria Universities both of the National Universities Commission. Results reveal that only 19 universities are technically efficient of which 12 are federal universities while 5 belong to the state governments.  Funding was established to be a major factor affecting the performance of the universities, while federal universities and especially those from the North Central zone of the country were found to be better in terms of funding than those from other parts. Strategies that increases fund to Nigerian universities without compromising the qualities must be embraced by the stakeholders to reposition Nigeria universities for optimum performance and efficiency and also make them to become globally competitive.

Kewords: Efficiency, Nigeria, University, Funding, Data Envelopment Analysis