Nigerian Universities are grossly underfunded. But the underfunding is a worldwide phenomenon. In the face of this underfunding the US universities have maintained their top ranking in the world and South Africa have maintained their’s in Africa. One major secret of these universities’ performance is their ability to raise funds from alternative sources through the University Advancement centers. Nigerian universities, beginning with University of Port Harcourt, Bayero University Kano, University of Ibadan, Ahmadu Bello University and University of Jos, through the promptings and assistance of the MacArthur and Carnegie foundations, have established the Advancement centres. But unlike the experience of the US and South African universities, the Nigerian universities have reaped very sub-optimal benefits from these centres. This paper presents and discusses the challenges faced by these centres and what can be done to reposition the centres to start tapping from the large pool of funds existing both within the country and internationally for the development of their universities. This will improve their infrastructure and lead to the production of quality human capacity and research outputs needed by the economy for economic advancement.