The history of fiscal formulas in Nigerian federalism has shown steady and systematic tilt towards the practice of Fiscal Centralism which is completely antithetical to the tenets of fiscal federalism that Nigeria claims to practice as a federation state. The strain of Nigerian federalism has largely fuelled the conduct of heated and unending debates over the unethical nature of Nigerian federalism. It has largely been observed that the fiscal formulas of the Nigerian state from 1966 when the late military head of state Major General Aguiyi Ironsi introduced a unitary fiscal system through the unification decree, Nigeria has maintained Fiscal Centralism inspite of General Gowon’s later federal decrees 13. It is the interest of this paper to ex-ray the claim that the vacillation and conceptual policy aberration of the various Nigerian governments is a deliberate scheme employed by the central government to appropriate greater percentage of the country’s wealth, while marginalizing the region where the nation’s oil wealth is located. The work depended largely on secondary sources, especially publications and authorities on federalism, and fiscal policies, as well as, reports, and experiential inputs of the author. The papert establishes that indeed the Nigerian fiscal formulas deviated from fiscal federalism based on derivation, to the subsisting fiscal centralism which undermines the interest and development of the Niger Delta region, leading to the heightened clamour for resource control. It also stressed that evolution of fiscal centralism in the Nigerian federation has direct nexus with agitations and restiveness prevalent in the Niger Delta, and recommends a revert to fiscal federalism with suitable fiscal formulas that will bring about peace, stability and sustainable development in the Niger Delta and Nigeria at large.