The paper examined fiscal federalism and good governance in Nigeria. Fiscal federalism centres on allocation of resources among the federating units and as a matter of fact, acts as a precursor for good governance or otherwise. Qualitative research method was adopted for this paper. Findings revealed that there are contending issues and challenges of fiscal federalism in Nigeria; there is mismatch between revenue sources and functions of the various tiers of government and which in so doing hampers good governance.
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