Properties of the dissipative drift wave instability in a radially bounded nonuniform dusty magnetoplasma are investigated. By using the two-fluid model for the electrons and ions, we derive a nonlocal wave equation for the low-frequency collisional drift wave in the bounded system. The charged dust is assumed to be immobile on the time scale of the instability. The wave equation admits a dispersion relation, which exhibits the modification of the drift wave frequency and the dissipative drift wave instability growth rate due to radial boundaries. Possible application of our investigation to forthcoming nonuniform dusty magnetoplasma experiments is discussed.