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This book explores the impacts of ethnicity on economic development in the African continent especially in Ethiopia and Nigeria. It mainly argues that ethnicity, with having a great space on the politico-economic structure of the two nations, has hampered economic development through influencing investment, intensifying brain drain, amplifying corruption, leading unfair competition, eroding trust and exacerbating economic marginalization. By exploring the unfair economic distribution among various ethnic groups, the book also states that economic growths in Ethiopia and Nigeria have left masses of ethnic groups to live under poverty and inequality while they enrich few sections of the political elites and affiliated spectrum.This directly shows the nations' inability to implement genuine federalism for viable economic development.