This study examines the theory and practice of decentralization and its effects on Nigeria’s development and administrative policies. The main objective of this study is to examine the typologies of decentralization and how its practice has impacted developmental issues in Nigeria. The data for this study were obtained from secondary sources, such as textbooks, journals, magazines, and reports, which form the basis of the review and content analysis. This paper reveals that decentralization leads to more citizen participation in development, social justice, improved economic management, more political inclined and democratic accountability. On the negative side, if not properly monitored, decentralization can fall captive to local elites who may either circumvent the decentralized project or hijack it to satisfy their whims and caprices. This paper recommends, among other things, the mobilization of adequate financial and material resources to local units to enhance the success of decentralization