The study assessed the Federal Character Principle and Service Delivery in the University of Abuja Teaching Hospital (UATH). The main objectives of the study were to examine the extent to which the Federal Character Principle is strictly adhered to in the utilization of human potentials in UATH and to examine whether the Federal Character principle has improved the utilization of manpower and service delivery at UATH. Due to the nature of this research) the descriptive research method was used in order to get the solution to the problem posed by the study. Sources of data were the primary and secondary sources. The primary source consists of questionnaires while secondary source were gathered from journals and published books related to the field of study. Since the population size is large) the researcher used simple random sampling technique to obtain the study sample size. Also) hypotheses were tested with chi-square statistical tool. The findings of the study revealed poor implementation of the Federal Character Principle can enda:nger standards and professionalism in the organization. Also) the research reviewed that Federal Character Principle encourage the recruitment of unqualified personnel) which in turn led to poor service delivery. Finally) the research findings maintained that nepotism impact negatively on ·the federal civil service. The research recommended that appointment of qualified candidate for a particular job irrespective of region or group the person(s) comes from should be upheld. According to this research) it will help to promote efficiency in the service delivery in the UATH.