Background This study explored local government (LG) officials’ perspectives on barriers to regulating physical alcohol availability using three effective policies: alcohol licensing, alcohol outlet density, and hours and days of alcohol sale in Southwest Nigeria. Methods 31 semi-structured interviews were conducted with 34 officials (director of finance, revenue collectors, and rate officers) in 24 LG across 3 Southwestern Nigerian States (Lagos, Ogun, and Oyo). Their perceptions on barriers to regulating physical alcohol availability were discussed. Interviews were recorded, transcribed verbatim, and analyzed using Iterative Categorisation. Results Accounts of the LG officials reveal political complexities and structural barriers to regulating the physical availability of alcohol. Five major barriers were identified: lack of political will, economic benefits over public health, absence of a database on alcohol outlets, weak judiciary system, and insufficient personnel and funding. Participants reported how the government lacked the political will to formulate and implement national regulations on alcohol licensing and outlet density. LGs prioritized economic benefits from alcohol outlets over public health. Conclusion Regulating physical availability of alcohol at local levels will require the empowerment of LGs through formulating national regulations on alcohol licensing and alcohol outlet density, sufficient funding, and strengthening the judicial system at local levels.