In recent years a number of authors have delved into the subject of restructuring in Nigeria. However, unlike the others, this study aimed at examining the impact of restructuring on the socio-economic development of Nigeria.  The study is methodologically structured in both qualitative and quantitative approaches.  The latter drew its information from secondary sources such as textbooks, journal, articles, World Bank publication and internet sources.  These were cogently described, explained and analyzed within the context of the subject matter under investigation.  The quantitative approach involved the administration of structured questionnaire administered to sample population of 400 drawn from six Universities representing the six geopolitical zones.  The responses from the questionnaire were analyzed and tested by using a non-parametric statistical tool; chi-square (X2) at 0.05 level of significance at three degrees of freedom (3df).  The findings reveal that there was significant relationship between restructuring and socio-economic development measured in terms of poverty reduction, improved educational capacity and health care delivery.  Based on these findings, the study recommended that the federal government must as matter of urgency, take proactive steps to resolve the issues of poverty, improved the quality of education and health care delivery.  These can be achieved through good governance that will be accountable and transparent to Nigerians, which must precede restructuring to achieve the desired results.  Unless these proactive steps are taken the call for restructuring may not likely provide the desire results.

KEYWORDS: Federalism, Restructuring, Implication, Development and Governance.