This study examines the justifications for the creation of local government as an instrument of development in Nigeria. It studies the evolution of the local government system in Nigeria during colonial rule and since independence, from the experience of both the military and civilian regimes. It focuses on the 1976 local government reform and legislative reform of the 1999 constitution as amended. The methodology applied is documentary research which relies majorly on secondary sources of data, taking cognizance of the development theory of Seers as a theoretical framework. The study explores the justification of Local government creation as a reflection of true grassroots development in Nigeria. This study proffers vehement recommendations for local government creation, looking at the constitutional and historical perspective of Nigerian heterogeneous nature.