The authors examined the sources of funding early childhood education in existence in Nigeria with a view towards suggesting alternative sources to boost the revenue base for school effectiveness. The diminishing culture of the extended family system and the need for both parents to be in employment coupled with the need to provide access and ensure equity in educational provision have necessitated the need for early childhood education in public school in Nigeria. The paper argued that adequate fund is a prerequisite for good teacher preparation, provision of appropriate and good quality facilities, stimulating learning materials, regular supervision and monitoring of early childhood education programmes and school effectiveness. In order to achieve these scenario, the following recommendations were proposed for policy options: 15% of the constituency allowance of all national lawmakers and 10% of that of state of assembly lawmakers should be committed to providing academic and non-academic items such as textbooks, exercise books, uniform and meals to all pre-school children in public schools. Two million two hundred and ninety seven thousand, five hundred and forty seven (2,297,547) pre-school children aged 3 to 5 years are enrolled in 28,565 public schools across the country. Since these schools are domiciled in the constituencies and are patronized by the poor in the society, it is therefore imperative for them to commit a percentage of their constituency allowance to the educational welfare of the preschool children. Secondly, for a stable and regular funding of early childhood education, a provision like the Tertiary Education Trust Fund (TETFUND) that will be named Universal Basic Education Trust Fund (UBETFUND) is also recommended. This is to be committed to facility provision, training and retraining of teachers. Thirdly, a proposal of 5% federal government intervention of its consolidated revenue fund is being proposed. The present 2% is inadequate due to the large number of schools at this level across the country. Fourthly, anti-corruption policies such as budget and project monitoring, quarterly report on the disbursement of funds, dynamic audit department to forestall waste of funds and supervision of school buildings to ensure good quality should be put in place to ensure that funds are not misappropriated or embezzled.