The ex-mayor of Chittagong City Corporation, ABM Mohiuddin Chowdhury, conceived the idea of establishing a center of excellence for higher education and learning in Chittagong and initiated a needs assessment in 1998. A project proposal for Premier University was submitted to the Ministry of Education of Bangladesh in May 2001. The proposal was approved by the government of Bangladesh under the Private University Act (1992), and the University Grants Commission (UGC) approved the curricula of Premier University. The university came into being on 5 December 2001 and launched its academic programs in January 2002. During 2022, the university arranged its third convocation. In 2021 Premier University has obtained permanent campus establishment and operations approval from the Ministry of Education. Among the private universities in Chattogram, Premier University is the first to receive this accreditation. In 2012, this university had previously obtained permanent campus approval from the UGC. During the first years, the university offered a four-year bachelor's and two-year master's degrees in only a few subjects. Currently, the university consists of 6 Faculties and 13 Departments.