This paper examines the concept of Nigeria’s Federalism, its appropriateness, and application and the extent to which it has helped in resolving Nigeria’s developmental problems. The critical analysis of the trend, usage, and application of the concept reveals that the acceptance and adaptation of the concept were not based on its suitability and appropriateness in resolving the political, social, economic and developmental problems but was based on its convenience to the parties concerned. The paper discusses the most serious issues in Nigeria’s political development that were supposed to have been resolved and forgotten but have continued to feature at every stage of development and from all indications will continue to constitute Nigeria’s developmental problem unless some other concrete measures are taken. The paper attempted to identify the reasons and causes of this persistence and proffered solutions and recommendations on the best ways forward for Nigeria’s continuous existence as an entity. The paper adopted a descriptive and analytical approach to the various sources from text books journals, newspapers, magazines and internet materials. In conclusion, the paper provided recommendations for measures to be taken to reposition the country in the right course of development for the achievement of the benefits of federalism as the best political option for Nigeria.