The State and Local Government's Joint Account management has been problematic in Nigeria since its advent in the 1976 local government reforms that heralded the democratic dispensation of 1979, and its eventual inclusion in the 1979 Constitution. Using available secondary data, this paper examines the challenges of the Joint Account in Nigeria's revenue sharing and democratisation process. The authors make the claim that the introduction of the Joint Account, which bears unmistakable semblance with the British Colonial local administrative structure, stifles both the democratic process and the development of the federal state of Nigeria. This is mainly because of the historical route that Nigeria's federal system has followed in its development, from serving the colonial authorities' interests, to later military interventions in Nigerian politics and the subsequent politicisation of the process of state and local gov