This study examines the challenges in policy implementation and local government administration in Nigeria, specifically bridging the gap between policy and practice. The study aims to assess the impact of inadequate financial autonomy, weak institutional capacity, and political interference on the effectiveness of local government policy implementation. The research questions explore the influence of these factors on local governance and service delivery. The theoretical framework is grounded in Decentralisation Theory, which emphasizes the importance of devolving political, administrative, and fiscal powers to enhance local governance, promote accountability, and improve responsiveness to local needs. A qualitative research design was employed, using secondary data sources such as government reports, academic articles, and media content. Data were analyzed through thematic analysis, identifying key patterns related to financial autonomy, institutional capacity, and political interference. The study finds that while the Supreme Court ruling on financial autonomy is a positive step, its impact remains inconsistent across regions due to political resistance and varying local government capacities. Additionally, weak institutional capacity significantly hampers operational efficiency and the achievement of developmental goals, while political interference continues to undermine local government autonomy and disrupt policy implementation. The study recommends strengthening political will, improving local government capacity, and creating legal frameworks to reduce political interference. This research contributes to knowledge by offering insights into the challenges faced by local governments in Nigeria, emphasizing the importance of local autonomy, institutional strengthening, and the need to minimize political control to improve governance and service delivery.