In every emerging society, the position of the third tier system of government cannot be over emphasized. Local government as a unit and level of government at the grass roots has come to play significant transformative roles followings its closeness to the people and their needs. In the long run, actualization of the development will likely be fraught if local government cannot effectively and efficiently discharge its bequeathed functions through the law establishing it without adequate funds at its disposal. However, it is the interest of the paper to appreciate adequately the essence of local government in addressing developmental challenges, its relationship with the state and disposition to her financial obligations. The study utilized qualitative method in generating its data; while using power theory as a framework of analysis. The findings of the study has significantly revealed that the weaknesses and challenges of local government in discharging its functions in the contemporary dispensations are holistically tied down to the joint account operation of a state and local government. This relationship had stripped local government its status and financial autonomy. Thus, for institutional transformation as it pertains to grass roots development and leadership transformation to be attained, the study recommended that local governments should have their own separate accounts upon which statutory allocations, grants and other payments shall be paid in for effective operations in the fused cum diffracted Nigeria society.
Published Date: 2021-07-14; Received Date: 2021-06-23