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This study surveyed the challenges of collection development of electronic resources in university libraries in South East Nigeria. The descriptive survey research method was adopted for the study with population of 86 respondents. The instruments for collection of data were questionnaire and interview. Data collected from the questionnaire were analyzed using simple statistics (mean). The findings revealed twelve challenges that affect collection development of electronic resources in university libraries in South East Nigeria. They all have mean values ranging from 2.51 to 3.05 and are above the cut-off point of 2.50 on a 4-point rating scale. The study also revealed cost as a major challenge of collection development of electronic resources The study recommended that the university libraries in South East Nigeria should have an upward review of the library budget in order to attain to the cost of electronic resources and for the regular training of staff on new skills for electronic collection development; they should also take drastic action of acquiring electronic resources through consortium to maximize profit and discount; and the libraries understudy should improve their internet bandwidth for better access to the network.