Universities in Nigeria have historically faced underfunding, and at an operational level, compete for attracting the best pool of students, achieving the highest grades. Adequately funded universities not only ensure a higher standard of University curriculum, but also have the potential to result in competitive advantages over other universities. Nigerian universities function with the shortage in key educational resources, such as research materials, library facilities, science lab equipment, and suffer the consequences of underfunding. In this study, the problem of underfunding in Nigerian federal universities, its effect on the University central administration, and its relationship with external actors was explored. Employing resource dependency theory, the researcher considered external environmental factors such as alternate financial sources and competing organizations. A qualitative research methodology was adopted to examine the Ahmadu Bello University as a case study. The central research question was: What are the organizational and systemic factors in the Nigerian Federal University system that impact funding management by University administrators? The four sub-questions which guided the study focused on: the role of University personnel in resource acquisition, the impact of the external environment, the alternative revenue generators explored by University administrators to overcome underfunding, and the experience of University administrators as they contend with the impact of underfunding by the Federal Government. The study found that University administrators at ABU require training on securing alternative resources. This research has also identified administrative practices that help federal university personnel, on a broader scale, to function in an environment of financial uncertainty. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]