Revenue generation is the nucleus and the path to modern development. Thus, the study was to assess the effect of revenue generation in rural development in Nigeria, a case study of Ihiala Local Government Areas, Anambra state This is because local government as the third tier of government and the closest to the people especially in the rural areas needed revenue to provide basic social amenities to the people.

But it is unfortunate to note that the local government management has not lived up to expectation especially to provide basic social amenities to the rural people. Thus, the objective of the research was to analyze the extent to which poor revenue generation had affected the development of those 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 rural 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.