Continuous assessment is an important management tool for transforming university education. Although this policy employed measurable criteria to retain students' interest and objectivity, most academic staff of Nigerian universities lack basic knowledge and skills in test construction and interpretation and are thus, ineffective in continuous assessment implementation. This study aimed at investigating the role of continuous assessment in transforming university education and its implications for economic equity to meet global challenges. A correlation survey research design was adopted with one research question and three hypotheses to guide the study. Related literature was reviewed while data collection was done using researchers' designed questionnaire titled "Continuous Assessment Programme and Economic Equity Questionnaire (CAPEEQ)". The sample size of 250 academic staff drawn from a population of 714 made up of academic staff from Faculty of Education of the two universities studied using stratified random sampling technique. Multiple Regression analysis and Mean rank-order were applied to statistically analyze the data collected. Results obtained revealed ineffectiveness in continuous assessment administration. There were positive significant relationship between continuous assessment and students academic development, students' true ability and the quality assurance of the academic. It was therefore recommended that academic staff and students should be adequately trained for skill acquisition on assessment administration while retaining the utility value of serving university teachers to meet challenges of the competitive world.