Effective governance at the third tier level (local government) requires regular funding coupled with ability to locally raise additional funds. This position has become necessary because of the inadequacy of funds statutorily allocated from the federal and state governments. It is therefore our proposition that local governments in Nigeria should explore the entrepreneurial perspective to raising additional funds to ensure regular funds flow. It is therefore posited that local government can become entrepreneurial via direct involvement in entrepreneurial activities or making it possible for private entrepreneurs to invest within the local government and thus receive tenements and other levies. A mix strategy of public private partnership (PPP) can be adopted depending on the level of social development in the local government area