This study analyzed the impact of fiscal structure on socioeconomic wellbeing of Nigerian populace under the democratic dispensation. The statutory revenue allocations to the three tiers of government in Nigeria were used in this study to typified fiscal structure while socioeconomic wellbeing was measured with human development index (HDI). Data collected were subjected to Vector Error Correction Mechanism and results indicated that allocations to: the federal government showed no significant impact on HDI; the state governments exhibited significant negative impact on HDI while the local governments exerted a significant positive impact on HDI. The study therefore holds that the local government system remains the most efficient level of governance in terms of bettering the wellbeing of the people. The study recommended (among others) that the huge fiscal responsibilities allocated to the federal government of Nigeria should be depleted and transferred to the government closer to the populace (the local government).
Keywords: Human Development Index, fiscal structure, socioeconomic wellbeing, statutory allocation
