Most developed countries are increasingly employing performance-based funding (PBF)in higher education. This study sought to examine how such funding was being implemented in Cameroon. The Staff Development Grant (SDG) at the University of Buea was identified to possess features of PBF. Semi- structured questionnaires were administered to the staff of the university and the responses were analysed. The study revealed that the Staff Development Grant had most features of performance- based funding was a valuable instrument for responsiveness. Besides increasing the volume of publications, research productivity and promotion, the SDG spurred creativity, and cooperation in the university. Hence the possibility of similar schemes to be explored with other objectives of the higher education. Such would likely enhance institutional or system objectives and enhance the quality, efficiency and responsiveness of higher education institutions. Future researchers and policy-makers in Cameroon and other countries in similar contexts could explore the extent to which such performance schemes can facilitate or drive other objectives of higher education.
