Revenue generation is the nucleus and the path to modern development. Thus, the study was to assess the impact of poor revenue generation on the development of Local Government Areas. Consequent upon the fact that this tier of government is the closest to the people, and it will required revenue to meet the social and infrastructural expectations of its people. But it is worrisome that the level has fallen below expectations, vis-à-vis its inability to provide basic social amenities and services to the rural people. Thus, the objective of the research was to analyze the extent to which poor revenue generation have affected the operations and development of the rural areas. The researcher used primary and secondary methods of data collection to generate the needed data. The data obtained through questionnaire was presented in tables and expressed in simple percentages. The following were some of the findings which included poor development of the areas, lack of basic social amenities to the rural people and lack of revenue to maintain the existing infrastructures. The researcher therefore recommended that the local government should provide basic amenities of high quality. By doing so, the people’s interest would be geared towards giving their maximum support to the local government which would lead to the development of the rural area.