Urban infrastructure includes physical structures and facilities that are developed or services provided by the public or private institutions to enhance the efficient functioning of an urban centre. In Nigeria, urban infrastructure are largely financed, owned and managed by government at the various tiers through established public agencies. This research is aimed at critically examining the funding strategy of urban infrastructure provision in Nigeria. The objectives included to examine the current state of urban infrastructure in Nigeria, to review the funding policy of urban infrastructure provision in Nigeria and to assess the impact of the funding strategy on urban infrastructure provision. Data for this study were collected from mostly secondary source. The research concluded that the Nigerian government has been guilty of neglecting or under-funding infrastructure development due to either poor budgeting, estimation of acquisition, maintenance cost or sheer mismanagement of funds allocated for such projects. The paper recommended that funding of urban infrastructure provision and maintenance should be embodied in the national budget while monitoring of the executed projects should be performed by the statutory government agencies. This will ensure that the value for money spent is realized.