The objective of the study is to assess the extent to which Defund provision of scholarship to academic staff for post-Graduate studies improves the academic performance of higher educational institutions in South-Eastern Nigeria. The total population of the study is seventeen thousand, one hundred and eight respondents drawn from selected public owned higher educational institutions in South-Eastern Nigeria. Structured questionnaire aroused to collect primary data from a sample of 391 while 340 copies returned we reanalyzed. The study is anchored on the Systems Theory propounded by Easton (1963) while descriptive survey research design was used. The result of the correlation test indicates that there is a positive relationship between scholarship award to academic staff for post-Graduate studies and improved academic performances of workers in public owned higher educational institutions in South-Eastern Nigeria. The study concluded that Tertiary Education Trust fund has made significant improvement the quality and development of academic staff of the institutions studied since they can boast of motivates and energetic workers. The study recommended that Non-Governmental Organizations (NGOs) should support governments in scholarship award to academic staff of public owned higher educational institutions in South-Eastern Nigeria while violation of the Defund Act by government Agencies should be discouraged through institutionalization of affective regulatory framework.