This paper examines the methods in which university administrators can manage their Universities effectively and efficiently to accommodate the 21st century development challenges in Nigerian universities. University education is the education attained beyond secondary school level. The aim is to improve on the management of the resources available to the universities to enable it to achieve the goals and objectives of university education. The objective is to make universities in Nigeria to be relevant to the outside world in terms of teaching and learning and carrying out qualitative research locally and internationally. The issues faced by university administrators while trying to manage universities to meet up the 21 century development challenges in Nigerian universities are: poor funding, inadequate facilities, lack of motivation of staff and so on. It was concluded that university administrators need to take a bold step to follow and meet up with trends and adapt to changes for vigorous transformation and innovation of the universities for it to meet up with the goals and objectives for which it was set up. It was suggested that University administrators should team up or collaborate with other universities to trade ideas and knowledge for the benefit of the students, staff and the entire universities development as a whole and also, there should be vigorous entrepreneurship education that is based more of practical oriented skills which involves imparting students with knowledge and skills of vocational courses.