The study investigates into administration of fiscal federalism and local government autonomy using Askira/Uba local government, Borno State as a unit of analysis. The study has extensively reviewed related literature conceptually and empirically as well as adopting the Principal Agent Theory and Fiscal Federalism Theory for the purpose of theorization. In terms of methodology, the study adopts both qualitative and quantitative research design, sourced data through administration of questionnaires as well as secondarily. The study utilizes tables and simple percentages for presentation and interpretation of data generated. The study in terms of findings establishes the relationship between administration of fiscal federalism and local government autonomy, as well as identifying factors such as inadequate technology and information system, inadequacies on the part of legal framework, and regulations, centralized control and discretionary powers of the federal and state governments respectively, lack of public awareness and participation in politics and the historical influence of centralization of power most especially since the pre-colonial administration of the northern region responsible for difficulty in granting autonomy to local government in Nigeria. The study concluded that there is need for financial independence and autonomy for local government, revenue generation and allocation, budgeting and expenditure, accountability and transparency as ethics of governance, and efficiency and effectiveness are factors that established and showcases the close relationship between administration of fiscal federation and local government autonomy in Askira/Uba. The study went further to recommend that inadequate technology and information system, inadequacies on the part of legal framework, and regulations, centralized control and discretionary powers of the federal and state governments respectively.