Local governments are not sovereign unlike independence nation-State; it is a subordinate government which derives its existence and power from the law and constitution. Since 1976 Local government reforms were undertaken to strengthen the local system in Nigeria, several challenges serves as an impediment to the performance of local government in discharge their constitutionally assigned responsibility. One of such challenges is lack of financial autonomy. The objective of this study is to examine local government financial autonomy and how local councils can be free from induce interference by the State, especially in the area of operation, State/local government joint account which gives the State government undue advantage over local government. The study adopted quantitative research design for Primary and Secondary data, using simple and frequency percentage method, Bar-chart and Chi-square non-parametric techniques to analyse the responses of Ojo Local government Staff in Lagos State. A total population of One hundred and sixty (160) staff of the council was estimated while sample of 80 questionnaires was administered. Data collected were coded using Chi-square method. The study revealed among others that lack a financial autonomy in Nigeria local government hindering effective and efficient service delivery at the grassroots. Also, with the use of indepth interviewed, it has been observed that undue interference of state government in local affair, corruption among local government official etc. adversely affected the delivery of effective services to the rural dwellers. The study recommended that full financial autonomy should be granted to local councils on matter of statutorily assigned to them, the state/local government joint account system should be abrogated and honest and transparent officials should be put at the helm of local council affair in Nigeria.