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Nigeria operates a fiscal arrangement that caters for the needs of component states. Federalism is characterized by extensive inter-governmental relations in which federal, state and local tier interact to seek policies and programmes that will cater for the welfare of the public. This can become a reality when there is financial insubordination from any levels of government. It implies that federal, state or local level should depend on one another in performing their statutory functions in a federal state. The challenges of fiscal relations and national development is enormous in Nigeria, the paper will x-ray issues within the ecology of Nigerian federal structure, ranging from revenue sharing to fiscal decentralization, allocation expenditure and tax-raising power among the three levels of government. The paper concludes that the prospect of any nation depend on proper arrangement rooted in equity, fairness and justice to enhance equitable revenue formula for the best interest of Nigerian state. DOI: 10.5901/jesr.2013.v3n10p109

Issue of Fiscal Federalism and National Development in Nigeria during Obasanjo Administration