Despite the increasingly high number of higher education institutions (HEIs) in Nigeria, there have been serious concerns regarding the ability of graduates to effectively handle construction industry problems. Various researchers have found out that these concerns arises as a result of minimal collaborations between the HEIs and the industry sector. Through the help of a well-structured questionnaire survey, this research identified the various reasons why HEIs need to collaborate with the construction industry, as well as the benefits of doing so. The sample for this study consisted of one hundred and twenty-six (126) respondents drawn from professionals in the Nigerian construction industry. Factor analysis reveals four clusters, in the order of importance as enabling students to participate in industry activities, improving skills and competency among students, improving the overall university curricula and improving job and academic opportunities for students as these clusters signify the benefits of collaborations. The study revealed that the Nigerian government can foster collaboration through the provision of specific support services to HEIs by conducting outreach activities to increase awareness on the need for collaborating. It is therefore recommended that HEIs establish cordial relationships with the construction industry as students are kept abreast of the latest trends in the job market as well as industrial needs. This is necessary because as future custodians of the industry, present day students need to be imparted with the requisite skills and knowledge which adequate collaborations can result to.