This paper examined the importance of providing adequate funding for the National Universities Commission for effective university supervision in Nigeria. Qualitative and quantitative data were used in the paper. The data were collected from online publication and print materials. The paper depends on primary and secondary data. The paper identified inadequate funding, shortage of personnel, opposition from labour unions, inadequate supervision materials and ineffective capacity building as the challenges facing National Universities Commission in Nigeria. The paper also concluded that adequate funding of the National Universities Commission will lead to; infrastructural development, employment of adequate staff, effective capacity building, expansion of zonal offices, effective programme accreditation, improvement in quality of supervision and improvement in the quality of National Universities Commission services. The paper hereby recommended that the government should ensure adequate funding for the National universities commission.