In the Nigerian Constitution,the powers to create local governments lie with the National Assembly.
Looking at the definition of Local Government, it should be realized that it is government at the grassroots level, set up by An Act of Parliament or by Decree. It may also be defined as institutions of government through which local affairs are managed by local people under a law made for that purpose by the central Government.
It should then be noted that every thing centres on the federal government and as such, the National Assembly has to debate on the bill which will be signed into law by the President.