Since the Nigerian independence in October 1st 1960, there has been a wide spread concern over project abandonment, and cost overruns. At the same time, cost of University education is as high as about eight times it will cost other African countries to provide university education. These have had serious consequences on actualizing developmental objectives in various sectors of the economy in general and quality university education in particular. Furthermore, eroded quality of education in the country and production of graduates with paucity necessary skills required for labour market have resulted in serious setbacks to the economic development viz a viz the cost of providing university in Nigeria. The objective of this study therefore was to investigate the relationship between private cost and the efficiency of undergraduates in Nigeria with a view to proffering private cost effective methods that will enhance efficiency of undergraduates in the Nigerian universities.