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In response to paucity of funds in Nigerian University libraries, library managers have been compelled to introduce fee based library services to provide and sustain quality library services to library users. the objective of this study were to; Find out major existing sources of funding for Nigerian University libraries; To determine the services that are fee based; Examine the various pricing policies used to provide fee based library and information services to academic library users in selected university libraries in south west Nigeria; Find out the type of pricing policies adopted in these university libraries.; Determine if these policies are financially rewarding?.The survey research method was used. The data collection instruments for the study were questionnaires, interview schedule and observation methods. The major findings are that fee based library services exit in Nigerian University libraries and subsidy and total cost recovery are commonly adopted in the delivery of fee-based services to university library users. The study recommended that librarians should continue to join in the struggle for improved funding of the university, but the Vice chancellors should respect the 10% allocation to library development and allow the librarians to spend the funds on the library development instead of undue interference. Similarly, University librarians should be bold to introduce fees based services where required but must ensure that the right pricing policies are adopted for pricing of these fee based library services so that the primary function of the university libraries will not be compromised.