This study investigated effective teaching with the aid of ICT in Nigerian higher education institutions as a proposed solution to graduates' unemployability. The survey method was utilized for this study. Respondents were randomly selected from students and teachers of selected higher institutions in Nigeria. The findings reveal that, even though there is availability of ICT facilities in Nigeria tertiary institutions, the use of ICT as a means of teaching is very low. The research reveals that respondents only use ICT to get information for their studies and some other activities, but not as learning aids in class. Lack of funds, inadequate ICT facilities are among the factors identified as challenges to the effective use of ICT in teaching. It was recommended that school administrators and the government should provide necessary facilities for the adequate utilization of ICT for teaching in Nigerian institutions.