Government''s diverse interest in the university has continued to render the management of the university in a state of flux. Universities are bound to operate within the confines of the state''s regulatory framework, and at the same time work towards the expectations of other stakeholders (industries, companies etc). This study scrutinizes the dynamics in the relationship between the state and management of public higher education institutions vis-a-vis other stakeholders. It attempts an assessment of the consequences of these relationships on the management of higher education in Cameroon. The study reveals that an effective, mutual and positive relationship between the management of higher education in Cameroon and its stakeholders (government and others) would make an interesting contribution towards socio-cultural, economic and political progress of the country. Its findings demonstrate that insufficient university funding is one of the main reasons why university management can not meet the expectations of its stakeholders. The study suggests that government should put in place more flexible educational and political reforms that should attract much needed donor funding.