The specific objective of this study is to investigate and ensure the frequent flow and ensure financial effective policies, as prescribe and to profound possible way forwards for solving the problems as it saddled in local government. through a scientific research methodology, the research adopts both qualitative and quantitative data, primary and secondary data were collected, interview was also conducted and all response received from respondents were well documented for this research purpose. The paper also examines the state-local joint account system's conceptual framework, historical background, and real-world applications. Key issues that hinder local governments' capacity to carry out their mandates are discovered and identified by the research, including unlawful deductions, delays in allocation release, and budget diversion. Despite its primary goals of preventing financial corruption, embezzlement, and mismanagement of public funds, the state joint account system has fallen short of these goals and is now being used by state governments as a means of extracting local government allocations from the federation account. In order to encourage openness, accountability, and effectiveness in local government management, this study concludes by recommending improved oversight procedures, legislative changes, and training and capacity building programs. Based on the analysis, the study suggests and mandates that the state-joint account arrangement be abolished and that local governments be given direct access to federation account revenues.