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This paper aims at examining the financial condition of local governments in Nigeria and to assess its implications on sustainable development of communities. Secondary data from 122 local governments for a period of three years were utilized in examining the financial conditions of local governments in Nigeria. Findings show that the financial condition of local governments in Nigeria is poor, indicating financial distress. Hence, the deteriorating state of communities as less is available fordoi:10.19085/journal.sijmd030102 fatcat:do2njs2ynffpzkvgio7wuvvhxi