Nigerian Universities over the years have lagged behind in the performance of its formidable task due to the nature and dynamics of leadership as well as the political and economic environment of these institutions. The paper gives a perspective of the education sector in Nigeria. It examines the term ‘sustainable development’ and the role of the National Universities Commission and Engineering programme as the fulcrum and force for the development and sustenance of economic growth. This paper further examines performance management as a tool for assessing and evaluating institutional programmes and the sustenance of educational, economic and social development. It also presents performance management system as one such tool that can enhance the performance of the public agencies such as the universities. Its use is therefore recommended for Nigerian universities in order to be able to attain sustainable development.