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The fact that Nigeria is a very wealthy country both in human and mineral resources could be debatable since wealth is relative. What is, however, incontrovertible is the growing disparity between the wealthy and the wretched, and the general unevenness in the spread of infrastructural and human capacity development across the country. While several reasons have been advanced for this anomaly, this paper toes the path of structural functionalism by ascribing this ill to the faulty nature of Nigeria's federalism which concentrates excessive power and resources in the hands of the federal ruling elite class, with a chronic history of mismanagement, at the expense of competitive/concerted development. While it's become a common knowledge that this centrifugal arrangement has hindered altruistic and steady development, remedying it is politicised under the jamborees of 'national sovereign conferences' and campaign promises of 'restructuring'. In this, lies the politics of underdevelopment in Nigeria.