Nigeria is a country that is over dependent on crude oil revenue. As a result of drop in oil prices, the economy of the nation was affected. This has given rise to new innovations in economic diversification. Fashion industry has become an internationally and highly globalized industry and as a result of this, there is a growing competition in the industry. In Nigeria, the fashion industry has developed more exposure, participants, structure, presence, earnings and trainings. A recent overview of Nigeria’s Gross Domestic Products (GDP) reveals that the Textile, Apparel and Footwear sector contributes to the nation’s GDP. This descriptive study was carried out to reveal the perceived contribution of fashion industry to the economy of Nigeria in terms of growth and development from the perspective of university students. The study sought to know the perception of university students about fashion and their attitude to fashion products. It also investigated the social and environmental impacts of fashion products on University students and identified the untapped benefits of fashion industry that can enhance growth and development of Nigerian economy. A close-ended questionnaire was validated and 200 respondents were chosen from second, third and fourth year students of Osun State University (UNIOSUN), Okuku campus, Osun state. Study results showed that university students have a positive attitude towards fashion products as they have an understanding that fashion is beyond garment and footwear. Results also revealed that fashion industry has been contributing to the nation’s economic growth and that if adequate measures are put in place; it can generate more revenue for the nation. The study recommends the strategies that the government, fashion entrepreneurs and business owners and fashion consumers can apply to the industry to further boost the growth of the Nigerian economy.