This study situates the process of educational decentralization in the narrower context of social justice. Its main object, however, is to analyze the implications of decentralization for strategies of equity and social justice in Nigeria. It starts from the premise that the early optimism that supported decentralization as an efficient and effective educational reform tool has been disappointed. The author maintains that decentralization--on its own--cannot improve education service delivery, the capacities of subordinate governments, or the integration of social policy in broader development goals. If the desired goals are to be met, public spending must be increased, greater tax revenues must be secured, and macro-economic stabilization must be achieved without re-instituting the welfare state.