Fiscal federalism is a fundamental aspect of Nigeria’s governance structure, with the country operating a three-tier system of government – federal, state, and local. The study examined fiscal federalism and household development in Adamawa State, Nigeria. This study employs a descriptive research design to examine the impact of fiscal federalism on household development in Adamawa State, Nigeria. Descriptive research aims to systematically describe phenomena without influencing them. The study’s population consists of 756,600 individuals from Ganye, Hong, and Mubi North local government areas. Using Yamani’s formula, a sample size of approximately 400 was determined through simple random sampling. Data was collected using a questionnaire validated by experts and analysed using descriptive statistics, ANOVA, and correlation techniques. The findings indicate that fiscal federalism in Adamawa State has not significantly affected household income and consumption patterns. While fiscal decentralization shows a weak positive relationship with poverty reduction, revenue allocation and intergovernmental transfers notably influence household welfare. However, fiscal federalism’s impact on household access to public services and the developmental outcomes of local governments remains inconclusive. Based on these findings, recommendations include enhancing fiscal policies to meet household economic needs, addressing implementation challenges of decentralization, and ensuring transparent resource allocation. Future studies should explore regional variations, governance structures, and specific fiscal policies’ effectiveness in promoting household welfare.