One principal factor determining the provision of the required information resources and facilities that meet the needs of physically challenged students is funding. This study investigated library funding and physically challenged students in Nigerian universities, Descriptive survey research design was used for the study. The population of the study was 236 librarians in 17 public universities in South-west, Nigeria. Total enumeration sampling technique was used for the study. The instrument of data collection was questionnaire. Out of the 236 copies of the questionnaire administered, 171 copies were retrieved, representing 72.5% response rate. Data collected were analysed using percentage, frequency count and statistical mean. The study found that: the library facilities for physically challenged students in universities are walkway free of obstacles, clear and well lit signs in the building, and automatic doors; the challenges faced in providing services for physically challenged students include lack of funds to acquire special equipment, costly equipment, and lack of orientation on how to use the library; and the budgetary provision for meeting the library facilities needed by the physically challenged students is low. It was recommended that the management of the library should provide facilities that can help the physically challenged students use the libraries; consideration should be given to the physically challenged students in the architectural design of the library; and a significant portion of the library budget should be devoted to acquiring the facilities that can ease the use of the library by the physically challenged students.