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The most severe problem facing public institutions in Nigeria is the fiscal one, particularly in local government. This problem has been provoked by a number of factors, including ‘over dependence’ on statutory allocations from both the state and federal governments, deliberate tax evasion by the local citizenry, creation of nonviable local government areas, differences in the status of local governments in terms of the rural–urban dimension, and inadequate revenue and restricted fiscal jurisdiction. This article examines these factors and their attendant problems, implications and effects within the context of the fiscal federalism established by the 1999 constitution of the Federal Republic of Nigeria. For financially healthy local governments to exist, responsibilities and functions must be allocated in accordance with their taxing power and ability to generate funds internally. The constitutional provision that recognizes local governments’ power in this regard must give them full freedom to operate and this must be well guaranteed and adequately protected. These measures, coupled with a review of the revenue-sharing formula, the granting of fiscal autonomy and fiscal discipline as well as making local government responsive, responsible and accountable to the people will set local governments free from the fiscal stress promoted and strengthened by the 1999 constitution.

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The concepts of democracy and governance have come to occupy a more "prominent position in the discourse of national and international development". They have become key notions in which "citizens can have a more active role" which should enhance their positive view of the "increase legitimacy of the state". As a matter of fact, both concepts are inseparable from the existential characteristics of all political animals all over the world. They continue to determine the "democratic political arrangement" and, dictate the landscapes and operational nerves of all civilized democratic polities in today's ICT-driven world particularly in terms of the functional performance of the horizontal organs of government which have increasingly gained prominence vis-à-vis public policy and responsive service delivery.One of the critical components/units of these horizontal organs is the Legislature. The Legislature constitutes a cardinal part of the major pillars of the governance process in the democratic political systems of today's world, Nigeria inclusive. Thus, this paper generally examines the challenges and impediments faced in Nigeria by the legislature over the years and concludes with the prescriptions for better legislative political terrains and the steps to be taken to make the Legislature in Nigeria more relevant to the sustenance of the ingredients and values of democracy and good governance.

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