One subject that has remained contentious since the introduction of federalism in Nigeria has been how the revenue accruing to the nation will be shared between the federating units, namely, the federal, state and local government and among the states and the local government councils. The over centralization of power and resources in the first tier of government, has weakened other levels of governments, and undermined their capacity to fulfill the raison d’être for their establishment. The principle of independence and co-ordinate jurisdiction of different tiers of government that is a prerequisite of federalism has substantially been eroded, thus, exacerbating various forms of revolts. This paper reviews fiscal federalism, sub-national political revolt and internal colonialism in Nigeria. It utilized secondary data and content analysis as its methodology. The paper observed the structural imbalance in Nigeria’s federal system occasioned by colonial experience amongst others as the causes of sub-national revolts and recommends restructuring of the Nigeria as the panacea for the survival of federalism in the country.
Key words: Corruption, federalism, fiscal federalism, sub-national, internal colonialism, Niger Delta, Revolt.