Ethno-religious identity contestation has a lot to contribute to national development in Nigeria particularly if it is maximally managed. Nigeria is characterized with this phenomenon of diverse ethnicity as well as religious persuasions. These phenomena have been a stumbling block in the progress of national development. There has been however, number of research works on how Nigerian nation has been suffering from maladministration. The work adopts the combination of historical, descriptive and intergroup relation theory to examine the dynamics of these issues and come up with a working-tools to ameliorate the situation. This work tends to assess the implications of ethno-religious identity contestation and the extent to which it has robbed the country of rapid development. It briefly traced its causes and look at how Islamic measures could be used to curtail and ameliorate its consequences in future. The work therefore posits that the idea of unhealthy rivalry, segregation and personal aggrandizement is abhorred in Islam. It concluded by coming up with suggestions from Islamic perspectives on how ethno-religious identities and contestation crises could be resolved among the populace.
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