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The paper intends to investigate the reasons for poor performance of local governments in Nigeria as well as looking at the alternative sources of funding local governments been the level of government closer to the people but unfortunately this level of government has been subjected to serious underfunding by the other tiers of government couple with economic recession that is affecting the globe, it is clear that government alone could no longer continuo funding local governments, Nigeria is a mono-crop economy that is heavily rely on oil, any fluctuation in the oil market could definitely make a negative impacts on their allocation and affect the rate of service delivery to the people, traditionally local government allocation came directly from federal allocation but for unknown reasons the state government do hijack it and gives local government a token amount that is not even enough for the payment of their salaries, Descriptive approach was used to gather data, the findings revealed poor performance of local governments in Nigeria and the paper suggest that local government should look outward for alternative sources of revenue instead of relying on federation allocation.

Developing Alternative Sources of Funding Local Governments in Nigeria during Period of Global Economic Recession