Investment in education is treated as a factor contributing to the development of human resources. In effect, private initiative can help since the private sector is the beneficiary of the knowledge industry. Privatization implies induction of private ownership which education is not an exception. It is therefore the responsibility of both individual including the student, his family, his employers and the society which includes the community and the state. There are factors responsible for privatization of higher education which some of them are; need for competitive efficiency and growth in population. Not only that, there are major causes of privatization of higher education which some are; expansion and establishment of education institution and knowledge explosion. There are also merits of privatization of higher education which include; initiative in educational reforms and innovativeness in teaching and evaluation while demerits; job insecurity and lack of accountability. Programmes and policies of privatization of higher education are highlighted including its strategies. Conclusion was made and suggestions enumerated which some are; nations should have stricter rules and regulations in its privatization policies and illegal private higher institutions should be clamped down by relevant government regulatory agencies.