This paper engages in the sustainable livelihoods debate in post-colonial Nigeria. It contends that the development bankruptcy of the colonial state resulted in a failed post- colonial development ideology which is an interesting theme of debate in five decades of political independence of Nigeria. This strengthens discourses suggesting viable alternatives. Reflecting on the aim of this research and the present development realities of Nigeria including increasing poverty and rural/urban dichotomy, the paper deployed the Marxian political economy framework and focused on brief genealogical mapping of the colonial and post colonial development plans to identify salient gaps and contradictions of post-colonial development policy. The paper emphasizes the marginalization of rural livelihoods and in a distinct dimension, postulates sustainable rural livelihoods and diversification as inclusive bottom-top alternatives.