This study explores the role of local government councils in promoting inclusive development in Nigeria through a qualitative–thematic analysis. Despite their constitutional status as the third tier of government, local governments face systemic challenges such as limited fiscal autonomy, weak governance structures, and undue political interference from state governments. Using a multiple case study design, the paper examines grassroots experiences across different regions, including environmental neglect in Ogoni Land, forced evictions in Lagos State, poor service delivery in Zamfara State, and herder-farmer conflicts in Benue State. The analysis of semi-structured interviews reveals how communities perceive and cope with these challenges, highlighting issues like fiscal strangulation, erosion of autonomy, and democratic deficits. The paper concludes by emphasizing the need for genuine fiscal and administrative autonomy, improved accountability, community engagement, and capacity building to strengthen local governance and enable inclusive development.