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This study focused on the level of penetration of Internet usage among undergraduate students in Nigeria using Obafemi Awolowo University as a case study. Result showed that about 92% of undergraduate students have embraced the Internet and are using it consistently. The online mean time is 3.5hrs/week while on the average, undergraduate experience of Internet usage is about 4years. We found also that the students use the Internet mostly for e-mail, information search and online chatting; all of these were found to have significant impact on their academics and social life. Further analysis revealed that gender attitude is also an important issue; male students appear to use the Internet more than their female counterparts; just as science based students use it more than the non-science based students. The paper therefore recommends appropriate policies for all higher schools of learning in Nigeria to facilitate further diffusion and use of the Internet.