The importance of local government administration in a federal country like Nigeria cannot be overemphasized. Apart from its economic and developmental benefits, its political relevance are arguably noticeable in promoting grassroots democracy in liberal societies. As the nearest level of government to the people, local government helps to facilitate political participation, representation and accountability, all of which enhance democratic culture. The paper against this background, probes the extent to which democratic values and practices are imbibed at the grassroots in Nigeria since the emergence of a system of local government in 1950s and its continuous development through several reforms in 1976, 1984, 1988, 1991, etc. The paper unveils that despite its age long development, the third tire level of administration in Nigeria is still seriously challenged by factors like: total disregard to democratic practices especially, election, lack of administrative and financial autonomy, lack of accountability and corruption. Keywords: Local government, Grassroots Democracy, Development, Accountability.