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The need for effective institutional communication in any social systems cannot be over-emphasized. Communication is crucial to the survival and effectiveness of any organization. It is on the basis of this background that this study examined institutional communication and administrative effectiveness of universities in Kwara State. The study adopted a correlational research design. The population of the study was 409 participants drawn from Principal Officers, Deans, Head of Departments, Directors of Units and Directorate of Information and Communication Units in all the universities. Thereafter, purposive sampling technique was used to select 272 participants for this study. Two instruments entitled “Institutional Communication Questionnaire” (ICQ) and “Administrative Effectiveness Questionnaire” (AEQ) were developed for data collection from the respondents. Validity and reliability of the instrument were ensured and a co-efficient value of Alpha 0.68 and 0.72 was obtained for ICQ and AEQ respectively. The finding of the study showed statistically that there was relationship between institutional communication and administrative effectiveness with calculated (r-value 0.647 < pvalue 0.000). The study recommends that university administrators should ensure that other institutional communication processes should be adequately and effectively employed to complement marketing communication; university administrators should improve on the use of institutional communication as a tool of sound decision-making and management communication channels should be encouraged and improved in the universities as a means of passing or transferring information.