Funding of education in Nigeria has not met UNESCO recommendation over the years across all strata of education in Nigeria from primary to tertiary education. This poor or underfunding in education sector greatly affected engineering education due to its capital intensive nature which has led to downward slide in quality of education received by graduates vis-a-vis employers’ expectation to drive the nation’s industries. This paper reviews the impact of inadequate funding as it adversely affect engineering education in terms of ill equipped library, non availability of e-resource materials, ill equip class room, inadequate training of faculties, slow internet, grossly inadequate field trips, ill stock and obsolete equipment in laboratories and workshops in order to proffer solutions to these myriads of drawbacks. Secondary data obtained from Budget office on funds allocated to tertiary education from year 2010 to 2020 on capital and recurrent expenditure .The data analyses over span of years under review shows that more moneys were voted for recurrent expenditure than capital expenditure. In order to upturn this downward slide in quality of engineering education. It is recommended that government must urgently invest adequate funds to meets needs assessment in all public schools so as to urgently fix infrastructural/capital gaps and training needs of faculties among other pertinent issues that need to be addressed as a panacea to all setbacks bedeviling engineering education.