This book uses the political economy approach to examine the relative failure of federalism in
Nigeria. It shows the nexus between the political and the economic aspects of the country¿s
federalism. The central feature of Nigeriäs political economy is the relationship between oil
resources and the state. The author argues that the inability of the federal government to
distribute the oil wealth fairly amongst the component units contributes to the dysfunctional
character of the federal system. This deficiency is rooted in the country¿s unbalanced
political economy which promotes over-dependency on oil and consequently an over-centralised
federal system. The book concludes that despite its complexities federalism has become the
basis for the country¿s stability. Therefore ethno-regional demands for ¿true federalism¿ will
continue until the political elite reform the ailing federal system.
