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Purpose: The paper focuses on x-raying the challenges of managing university libraries in contemporary digital environment. Design/methodology/approach: The paper adopts a combination of the desk research approach and interview sessions. Inferences were drawn from extensive literature review and content analysis. Highlights of the paper: the changing scenario of the library environment, the need for effective management of university libraries in digital era and the basic concepts in the paper were highlighted. Findings: demands for new skills, cost/funding, managing of new generation of learners, lack of skilled manpower, lack of confidence in the face of increasingly information technology, lack of maintenance culture, resistances to changes etc were identified as challenges to managing university libraries in digital era. The strategies for effective management of university libraries in digital environment include adequate funding of university libraries, effective communication, adopting of good leadership style, recruitment of adequate/skilled staff and training/retraining of library staff. Conclusion: The paper concludes that university library are faced with myriad of problems in terms of management, therefore there is an urgent need for library administration in universities to take practical and innovative steps in ensuring that these problems addressed, then and then, can the management of university libraries in the digital environment yields it desired results.