The essence of reforming local government system was to bring about stable increases in the income, productivity, diversification of economy and general quality of lives in the rural areas. But the ability of the local governments to accomplish these tasks will depend extensively on their autonomy and financial positions. The problem of local governments in Kogi State is usually associated with by certain underlying factors like overdependence on statutory allocations from the Federation Account, autonomy, corruption, finance, qualify staff etc. The objective of this study focuses on finding out the causes of poverty and underdevelopment in Kabba-Bunu local government and to recommend appropriate solution. The data used for this study were collected through two main sources, namely; Primary and Secondary sources. The primary sources involves use of questionnaire administered directly to respondents and oral interview conducted to serve as veritable instrument for collecting facts and figures while the secondary source include: textbooks, journals, internet and conferences. to demonstrate considerable good governance and affect the lives of the rural people through consistent service delivery as the primary policy, Kabba-Bunu local government should minimize it total dependence on the federal allocation, and increase their efforts towards generating more revenue through the diversification of their internal revenue sources, minimize corruption, autonomy should be granted.
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