Several challenges have emerged over the years to impede the performance of local government councils in the discharge of their constitutionally assigned responsibilities. One of such challenges is the dwindling revenue base of the local government which has remained an impediment to national development. This paper focuses on how local government can identify revenue sources available to them and ensure effective management of their finances to enhance rural development. A 5 point Likert scale is used to rate hypotheses. It is found that effective utilization of local government finance have significant effect on rural development and a solid financial base have significant effect on the enhancement of rural development. It is recommended that there should be efficient management and utilization of available fund; and also accountable leadership.
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