In the world today, information remains the most sought for factor of production and the key to effective decision making in any organisation or institution. It is that which clears one from any state of uncertainty. This study therefore, is a survey into the future and prospect of special libraries as transformation agents in public institutions in Nigeria as custodians and disseminators of specialized information for the realization of the objectives of establishing these institutions. Eight public institutions were studied using purposive sampling technique. While structured and validated questionnaire, interviews and observation were the instrument used for collecting data for the study. The data obtained for this study were analyzed using simple mean scores. The findings revealed that special libraries and public institutions in Nigeria are bedeviled with hydra-headed challenges including: inadequate qualified personnel; lack of ICT equipment and infrastructure, poor funding, lack of maintenance culture, negligence on the part of management and moribund public power supply. It was further discovered that the special libraries were far performing below by every standard their functions as transformation agents. It is against this backdrop, that recommendations were made which include, tackling all identified challenges by both the government and management.