Local government administration in Nigeria is as old as history and its dated back precolonial era. It had been part of system of government among ethnic groups in Nigeria particularly the Yoruba in the West, Hausa/Fulani in the North and the Igbo in the East. Each ethnic group operating it as it suits their cultural value. Under colonial administration, it was known as indirect rule system. It was an attempt to govern the people through their chief. At independence and thereafter, the system has since been restructured and reorganized depending on the regime and the nature of government in power. These changes have made it to pass through series of uncertainties and with peculiar characteristics. The specific objectives of this study are to examines both the inherent weakness of the constitutional foundation and the contradictions created by the 1976 reforms, also examines the historical development of local government in Nigerian state. The research methodology is carried out through the use of secondary data. Using a theoretical analysis, the paper finds that the combined effects of constitutional gaps and reform contradictions have rendered Nigeria‘s system of local government an unfortunate ‗orphan‘, and that, lacking a strong constitutional foundation, local government in Nigeria has been subject to the whims of both state and federal governments. The paper argues that, despite numerous constitutional developments, current constitutional provisions for local government in Nigeria leave much to be desired. However, the paper find‘s out that, the current state of Local Government in Nigeria is characterised by unbridled interference of the State Government and therefore recommends that, there is need to review the Constitution to make Local Government autonomous especially on the issues of fiscal power, functions and responsibilities. The recommendations to improve the system include that: local government should be given the status of a federating unit in the constitution, with its powers and functions clearly spelt out; the constitutionally mandated State Joint Local Government Account (SJLGA) should be abolished; and the constitution should be amended to create a chapter which guarantees the identity and autonomy of local government as a third tier of government.