Corruption is a major problem that ravages many construction and facility development projects in Africa. In Nigeria, this social menace has seriously crept into the activities of the construction industry and is currently affecting the quality of project performance negatively. Some of the effects of corruption in project and facility management include but not limited to project delay, project abandonment, poor service delivery, unprecedented high cost of project execution, reduction in quantity and quality of infrastructural facilities, wastage of tax payer’s money, poor image of the industry among several others. This paper identifies the sources of corruption, the likelihood of their occurrence in contract activities, construction contract methods and contractor selection modes more prone to corruption, and their severity of impact on project performance. The study also suggests ways to curb the current preponderance of corruption in construction project and facility management in Nigeria. The methodology of study involved descriptive survey and the research design was by a structured questionnaire administered to a study population involving construction industry client organizations, consultants and contractors. The study revealed that corruption characterize many activities of the Nigerian construction industry. The study concludes that contract bribery and project fund embezzlement were most prevalent and also impacted most severely on construction project performance in Nigeria. The study recommends institutionalizing the culture of transparency, good practice, ethical conduct and accountability at all phases of construction project and facility management in Nigeria.