This paper presents a discussion on knowledge production in higher education, policies and practices in Nigeria. At the introduction, the overall objectives of higher education are highlighted and the concepts of policies explained. The paper therefore identifies some factors as the major challenges to knowledge production; some of the factors are lecturers or research fellows, money, governance and public policy support. It is the belief of the authors that these inputs should be deployed in adequate proportions both in quality and quantity as no knowledge produced can rise above the quality of those who produce it. Some recommendations made include that government should allocate adequate funds to higher education to enable her improve the quality of her teaching and research in line with international standards. Nigeria should have working policies guiding higher education which are monitored and evaluated annually.